Question

    Name the bank which has been recently put by RBI under

    Corrective Action Framework (PCA).
    A Bank of Baroda Correct Answer Incorrect Answer
    B Syndicate bank Correct Answer Incorrect Answer
    C Union Bank of India Correct Answer Incorrect Answer
    D Bank of India Correct Answer Incorrect Answer
    E Canara bank Correct Answer Incorrect Answer

    Solution

    Banking regulator RBI has put Bank of India under Prompt Corrective Action (PCA) framework. This is due to weak financial profile: very high Non-Performing Asset (NPA) of 12.62%, insufficient Common Equity Tier 1 (CET1) capital and negative Return on Asset (RoA). How does it affect the bank? Now the bank will face restriction on lending, enhance effort for recovery of loans and sale non-core assets.   BOI is a Public Sector Bank (PSB) with government stake of 75.1%.

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