The Reserve Bank of India has put Central Bank of India under prompt corrective action (PCA) in view of high net non-performing assets and negative return on assets.
In a statement to the stock exchanges, the public sector bank said: “We believe that corrective measures arising out of the PCA will help in improving the overall performance of the bank.”
Central Bank of India’s net non-performing assets as a percentage of net advances increased to 10.20 per cent as at March-end 2017 from 7.36 per cent as at March-end 2016. Return on assets was negative in both FY17 (0.80 per cent) and FY16 (0.48 per cent).