Allahabad Bank on Wednesday said it is expecting to come out of the Prompt Corrective Action (PCA) framework of the Reserve Bank of India (RBI) by March, 2020.
Public sector lender Allahabad Bank on Wednesday said it is expecting to come out of the Prompt Corrective Action (PCA) framework of the Reserve Bank of India (RBI) by March, 2020, if everything goes “well and smooth” as per its projections. Last month, RBI had imposed additional restrictions on the Kolkata-based bank under the PCA framework.
The central bank had asked the lender to restrict expansion of risk-weighted assets (RWA), reduce exposure to high-risk loans and restrict accessing or renewing wholesale deposits.
Talking to reporters after the annual general meeting here, the bank’s executive director N K Sahoo said a roadmap to deal with the rising bad loans and revamp its operations was submitted to the central government. “The bank is undertaking several measures to come out of PCA. We are not going for bulk deposits and trying to shrink our balance sheet. We want to make it more healthy. Also, we are focussing on recovery of bad assets.”
Sahoo chaired the 16th AGM of the bank as its board had last month divested its MD and CEO Usha Ananthasubramanian of all powers, following a directive from the finance ministry after she was named in the CBI’s chargesheet in PNB fraud case.