Last month, RBI said that capital, asset quality and profitability would be the basis of the PCA or prompt corrective action framework on which the banks would be monitored and has defined three kinds of risk thresholds.
IDBI Bank's non-performing loans ratio rose sharply to 15.2 per cent in the December quarter from 10.9 per cent in March 2016.
"A bank will be placed under the PCA framework based on the audited annual financial results and RBI's supervisory assessment".
In February this year, global rating agency Standard & Poor's downgraded IDBI Bank to "BB" citing "very weak asset quality" but maintained a stable outlook on the state-run lender.
US to play Oct 6 World Cup qualifier vs Panama in Orlando
The City Beautiful, now brimming with purple footy pride, was just awarded perhaps the most pivotal soccer match the men's U.S. The ESPN and Univision Networks will broadcast live from Orlando City Stadium, with the kickoff time still to be determined.
IDBI, which is nearly 74 percent owned by the government, had a net bad loans ratio of 9.61 percent as of December. "However, RBI may impose PCA on any bank during the course of a year (including migration from one threshold to another) in case the circumstances so warrant", RBI said.
A public sector lender, Dena Bank's net NPAs at end of the fourth quarter was 10.66 percent, up from 9.52 percent in the third quarter.
Accordingly, K Kharat CEO of IDBI Bank was asked to join Indian Bank and M K Jain, CEO of Indian bank was asked to move to IDBI Bank.
Apart from this, the RBI has discretionary action plans too. Banks will also have to launch a special drive to reduce stock of NPAs and contain generation of fresh NPAs.
Antonio Conte urges Chelsea players to turn great season into fantastic season
Former Chelsea star Frank Lampard has warned that the Premier League champions will face "a big test" to continue their dominance next season.
RBI may likewise force limitations on the count on borrowings from the interbank advertise.
"There is about 600 billion rupees worth of equity-capital gap that state-run lenders need to plug in the next two years after factoring in the 200 billion rupees that the government has pledged as of now", Srinivasan said.
The current market value of the stressed assets were far lower and the banks will have to take a significant hit when they write-down the value of these assets to market value, according to the report.
IDBI Bank had posted a net loss of Rs 2,254.96 crore for the quarter ended December 31, 2016, as compared to net loss of Rs 2,183.68 crore for the quarter ended December 31, 2015.
Spurs will adapt to playing at Wembley, says Pochettino
It's important, too, that we're staying on the same site. "Of course wins help to win so we want that". It is a game that we want to win and for sure they will want to win. "That's what we're going to do.
- I was going to fire Comey regardless of DOJ recommendation
- Morgan Stanley Indicates Potential 9.73% Increase In Shares Of XPO Logistics
- NBA Playoffs 2017: Spurs vs
- Manila, Beijing to open South China Sea talks next week: envoy
- Charlie Hunnam Talks About The Challenges Of Playing 'King Arthur'
- Analyst's Proposition on Hanesbrands Inc. (HBI), SunPower Corporation (SPWR)
- Wegmans, Publix, Trader Joe's are consumers' favorites, survey finds
- Horgan holds hope he will be BC premier
- Ransomware infections reported worldwide
- Texas Asks For Millions in Federal Funds to Help Defund Planned Parenthood