7 mins ago .
Nationalized lender, Dena Bank has been barred to lend loan and hire new staff. Dena Bank is a renowned Public-Sector Bank, being in the business since last 80 years. But recently, with the high hitting Non-Performing Assets (NPA) the bank has been restricted from giving fresh credits & recruit new personnel. Check the Dena Bank Exam Updates to know the cause and impact of this order by RBI. Dena Bank has recently stated that:
“We wish to inform that the RBI, vide their letter dated May 7, 2018, has restricted the Bank from assuming fresh credit exposure and recruitment of staff,” Dena Bank said in a notification to the stock exchanges.”
The reason for this stern measure by RBI is the weak financials of the bank. The Gross NPA for Dena Bank has been elevated from 16.17% in March 2017 to 22.4% in March 2018. The increased Non-Performing Asset (NPA) has undermined the financial base of the bank. And to prevent the financially troubled banks (like Dena Bank) from collapsing, RBI puts them under the Prompt Corrective Action.
What is Prompt Corrective Action (PCA)?
Prompt Corrective Action is the action taken by the Regulatory Body to help the declining organisations afloat.
Any bank comes under the PCA it they breach the minimum requirements of Capital Adequacy Ratio (CAR). Although, the Dena Bank is still allowed to lend money to the already permitted borrowers but is not allowed to make any new debtors. Apart from this they have also been stopped from distributing dividends and other profits anymore.
Dena Bank Exam Updates
Prior to this, Dena Bank had released a recruitment notification for the post of Probationary Officers. The Dena Bank PO Exam 2018 is scheduled to take place on 2nd June 2018. But after their latest debacle, the exam has been cancelled. According to the Dena Bank Exam updates, the Dena bank is going to request the RBI to modify their order, but the future of the bank is still jeopardy.
With the dropping Indian economy, there are many other banks who are under the watch list (PCA) of RBI which includes IDBI Bank, Bank of Maharashtra, Oriental Bank of Commerce, Allahabad Bank and UCO Bank. After the stern decision against Dena Bank, these banks are despondent about their future. To curb this catastrophe, RBI and other banks will have to come up with new measures and drives to decrease the NPA of these banks and redeem.
If you are preparing for any Government Exam, attempt free tests for practice on Testbook.
Discuss your queries regarding Dena Bank PO Exam with our expert and your fellow aspirants on Testbook Discuss.