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Central Bank of India shares down 4% after RBI move

Favourable domestic factors to accelerate growth: RBI

Mumbai: Shares of Central Bank of India fell by 4 per cent today 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 lost 3.98 per cent to Rs 97.60 on BSE. On NSE, shares of the company dipped 3 per cent to Rs 99. 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 June 13, 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 yesterday. For the fiscal ended March 2017, the bank reported a net loss of Rs 2,439 crore, against a loss of Rs 1,418 crore in 2015-16.

Net non-performing assets (NPAs) also jumped to 10.20 per cent of net advances for the fiscal from 7.36 per cent year ago.

PTI