PNB gross NPA has touched 8.4 per cent and Dena Bank gross
NPA is at 9.8 per cent for quarter ending December 2015
As per the regulatory framework, the Reserve Bank of India can initiate prompt
corrective action - where it places several restrictions to discipline the bank
- on banks whose bad loans cross 10 per cent and capital erodes substantially.
Last calendar year, RBI had placed PCA on Indian Overseas Bank as its share of
bad loans crossed 10 per cent.
Dena Bank had to make provisions of Rs 966 crore against 241
crore in corresponding period, further it had to reverse Rs 139 crore of
interest income as some of the loan accounts turned bad. Tax write-back of Rs
909 crore saved the day for PNB it has reported operating loss of Rs 857 crore.
Meanwhile, Allahabad Bank provided Rs 1208 crore for bad loans which touched
6.8 per cent.
Source: economictimes
