RBI puts Lakshmi Vilas Bank under Prompt Corrective Action

TIL Desk/Business/New Delhi/ Private sector Lakshmi Vilas Bank on Saturday said the Reserve Bank of India (RBI) had initiated Prompt Corrective Action (PCA) against it on account of its high non-performing assets (NPA) and others.

In a statutory filing in the BSE, Lakshmi Vilas Bank said: “The RBI has initiated PCA on account of high net NPA, insufficient capital to risk assets weighted ratio (CRAR, also known as capital adequacy ratio CAR) and common equity tier-1, negative return on assets for two consecutive years and high leverage.”

The PCA comes after the RBI carried out an on-site inspection of the Bank on March 31 under Risk Based Supervision. According to the bank, the Reserve Bank has advised it on the restrictions imposed and the actions to be taken.  The Lakshmi Vilas Bank said it will report the monthly progress on the RBI directions.