The Reserve Bank of India has initiated a “prompt corrective action” against state-owned Oriental Bank of Commerce for high bad loans.The move will place various restrictions on the public sector lender, including on fresh loans and dividend distribution.“The Reserve Bank of India…has put the Bank under Prompt Corrective Action in view of high Net NPA (non- performing asset),” the bank said in a regulatory filing.It, however, added that the action will not have “any material impact” on the performance of the bank and will contribute in overall improvement in its risk management, asset quality, profitability and efficiency.
Net NPA of the bank rose to 9.56 per cent of net…
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