RBI monitoring 11 Public Sector Banks in its watch-list for NPAs

NewsBharati    09-Apr-2018
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New Delhi, April 9: The Central Banking Institution looks forward to placing 11 Public Sector Banks (PSBs) under 'Prompt Corrective Action' to curb loans by banks in connections with NPAs (Non-Performing Assets).

Currently, the Reserve Bank of India has 11 frail PSBs of the 21 state-owned banks under the Prompt Corrective Action (PCA) category. Reportedly, Canara Bank, Union Bank, Andhra Bank, Punjab National Bank and Punjab and Sind Bank could also be placed under 'PCA'.

Since the PCA framework restricts the amount of loans banks can extend, this will definitely put pressure on credit being made available to companies especially the MSMEs. Large companies have access to the corporate bond market so they may not be impacted immediately.

Meanwhile, PSU banks SBI and PNB have put their 15 NPAs worth Rs 1,063 Crore for sale. E-auction for the sale would be done on April 20, the banks said. While SBI will sell 12 accounts with total outstanding of Rs 848.54 Crore, PNB will put 3 NPA accounts with a total due of rs 214.45 Cr for sale. The NPAs will be sold to asset reconstruction companies/banks/NBFCs/financial intuitions.

RBI Public Sector Banks Reserve Bank of India NPA Non-Performing Assets Loan PSB Bank