RBI impose PCA on Corporation Bank as Bad Loan rise

State-run Corporation Bank said on Wednesday that the Reserve Bank of India has initiated ‘prompt corrective action’ for the lender over high bad loans and the need to raise capital.

The bank did not provide further details on the central bank move, but said it would not have any material impact.

The bank had a net non-performing assets ratio of 10.24 percent as of end-September.

The central bank has this year put several other state-run lenders under its corrective action plan, mainly due to their high bad loans.

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