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.)

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