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Allahabad Bank Under Prompt Corrective Action (PCA)

Another Public Sector Bank (PSB), Allahabad bank is put under Prompt Corrective Action (PCA) by Reserve Bank of India (RBI) as the banks shows the net NPAs (non performing assets) and negative ROA (return on assets) for two consecutive years fiscal 2016-17. For the fiscal 2016-17, the bank had trimmed its net losses to Rs 313.51 crore against Rs 743.31 crore in 2015-16.

ReadWhat is Prompt Correction Action (PCA) ?

The list of other Public sector banks which are already put under PCA by RBI are :

  1. Bank of India
  2. Central Bank of India
  3. UCO Bank
  4. United Bank of India
  5. IDBI Bank
  6. Indian Overseas Bank
  7. Corporation Bank

ReadHow To Activate IMPS in Allahabad Bank ?

As per the PCA guidelines, the bank which are under PCA are having higher probability of getting merged. Earlier, start of the financial year 2017-18, The RBI had issued a new set of enabling provisions under the revised PCA framework with a clause that if the bank does not show improvement then it could be either be merged or taken over by other bank.

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