RBI announces additional actions under PCA for UBI

The RBI has initiated additional actions under the Prompt Corrective Action (PCA) framework for city-based United Bank of India in view of the high net NPA, low leverage ratio and the need to raise capital based on the bank's position as on March 31, 2017.

United Bank of India said in a regulatory filing to the BSE that the apex bank had issued these actions in a letter dated December 19, 2017.

The actions focussed on profit retention, capital augmentation, provision coverage, diversification of credit portfolio, rationalisation of expansion and cost control, along with the steps already initiated earlier by the bank.

The bank said normal activities like acceptance of deposits, credit disbursement and treasury function would remain unaffected and would not have any material impact on the performance.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel