Central Bank of India shares fall after RBI puts it on PCA watchlist for bad loans
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New Delhi: Shares of Central Bank of India fell as much as 4% on Thursday as the company has been placed under the RBI’s watchlist on Prompt Corrective Action (PCA) owing to high bad loans and negative return on assets. The stock closed at Rs100.25, down 1.38% on BSE.
On NSE, shares of the company dipped 1.27% to Rs100.80. IDBI Bank, Indian Overseas Bank, UCO Bank and Dena Bank have already come under the PCA initiated by the Reserve Bank, which is a noose-tightening on fresh loan disbursal as well as dividend distribution.
“Reserve Bank of India, vide its letter dated 13 June 2017, has put the bank under Prompt Corrective Action in view of high NPA (non-performing assets) and negative return on assets (RoA),” Central Bank of India said in a regulatory filing on Thursday.
For the fiscal ended March 2017, the bank reported a net loss of Rs2,439 crore, against a loss of Rs1,418 crore in 2015-16. Net non-performing assets (NPAs) also jumped to 10.20% of net advances for the fiscal from 7.36% year ago.