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IDBI Bank on Tuesday said Reserve Bank of India has invoked prompt corrective action (PCA) against it in view of high non-performing assets and negative return on assets.
In a notice to BSE, the public sector Bank said the move will not have any negative impact on its performance. PCA will lead to improvement in the bank's internal controls and it's activities, it added.
IDBI Bank is the first bank against which the revised PCA has been invoked. The central Bank is likely to do the same in the case of Dena Bank.
Under PCA, usually a bank's branch expansion is restricted and lending is narrowed to relatively less risky segments to nurse it back to health.
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