Insta
Lakshmi Vilas Bank.
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.)
Support Swarajya's 50 Ground Reports Project & Sponsor A Story
Every general election Swarajya does a 50 ground reports project.
Aimed only at serious readers and those who appreciate the nuances of political undercurrents, the project provides a sense of India's electoral landscape. As you know, these reports are produced after considerable investment of travel, time and effort on the ground.
This time too we've kicked off the project in style and have covered over 30 constituencies already. If you're someone who appreciates such work and have enjoyed our coverage please consider sponsoring a ground report for just Rs 2999 to Rs 19,999 - it goes a long way in helping us produce more quality reportage.
You can also back this project by becoming a subscriber for as little as Rs 999 - so do click on this links and choose a plan that suits you and back us.
Click below to contribute.
Latest