Reserve Bank of India has put additional restriction on State Run Public Sector Bank Allahabad Bank in lending to risky assets and accepting high cost deposits. Allahabad Bank is already under RBIs prompt corrective action (PCA) due to higher NPA.
Additionaly RBI has also restricted lender for expansion of risk weighted average and reduce exposure to un-rated and high-risk advances.
Government has also initiated action for removal of Allahabad Bank CEO Usha Ananthasubramanian following the CBI’s first chargesheet in the USD 2 billion fraud at PNB detailing her role.
Allahabad Bank reported a standalone net loss of Rs 3,509.63 crore for the last quarter ended March of 2017-18 due to more than three-time rise in its provisions for bad loans.