RBI Initiates Prompt Corrective Action Against Private Sector Lakshmi Vilas Bank On Account Of High NPAs

Private sector Lakshmi Vilas Bank on Saturday said the Reserve Bank of India (RBI) had initiated Prompt Corrective Action (PCA) against it on account of its high non-performing assets (NPA) and others.

In a statutory filing in the BSE, Lakshmi Vilas Bank said: "The RBI has initiated PCA on account of high net NPA, insufficient capital to risk assets weighted ratio (CRAR, also known as capital adequacy ratio CAR) and common equity tier-1, negative return on assets for two consecutive years and high leverage."

The PCA comes after the RBI carried out an on-site inspection of the Bank on 31 March under Risk-Based Supervision.

According to the bank, the Reserve Bank has advised it on the restrictions imposed and the actions to be taken.

The Lakshmi Vilas Bank said it will report the monthly progress on the RBI directions.

"The PCA is aimed at improving the bank's performance and will not have any adverse impact on its normal day-today operations, including acceptance/repayment of deposits in the normal course," the bank said.

(This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.)