RBI puts Bank of Maharashtra under PCA

Bank of Maharashtra (BoM) has been placed under prompt corrective action (PCA) by the Reserve Bank of India. Reserve Bank of India vides its letter dated 15 June 2017 has initiated PCA for Bank of Maharashtra in view of high net non-performing assets (NPAs).

This action will not have any material impact on the performance of the bank and will contribute to improving the internal controls of the bank and improvement in asset quality, profitability, and efficiency; the bank intimated the exchanges.
 
BoM's net NPAs had nearly doubled for the quarter ended 31 March 2017 at 11.76% compared to 6.35% in the same period previous fiscal. The bank's net NPAs for the sequential quarter (Q3FY17) stood at 10.67%. On an absolute basis, the bank had reported net NPAs of Rs 11,229.56 compared to Rs 6832.03 crore in Q4FY16 and 10,358.92 crores in the sequential quarter.
 
BoM is the fifth bank to be placed under PCA by RBI. The other banks, which, incidentally are also public sector banks, include IDBI Bank, Dena Bank, Uco Bank and Central Bank of India.