PCA review of 11 state-run banks on May 17

The government will hold a review meeting on May 17 of state-run banks that are under the Reserve Bank of India's prompt corrective action (PCA) framework. At present, there are 11 banks under PCA on account of poor performance. 

"A review meeting has been called for some of the weak banks next week, where we will discuss their progress to catch up with their peers and impediments in their growth," said financial services secretary Rajiv Kumar. 

Dena Bank, Central Bank of India, Bank of Maharashtra, UCO Bank, IDBI Bank, Oriental Bank of Commerce, Indian Overseas Bank, Corporation Bank, Bank of India, Allahabad Bank and United Bank of India are under the RBI's PCA framework. 

In January, the government had announced its Enhanced Access and Service Excellence (EASE) reform agenda under which banks will need to set up specialised monitoring agencies for loans above 250 crore and a separate vertical for non-performing assets (NPAs), apart from selling non-core assets and rationalising overseas businesses. They also need to have a minimum 10% exposure in consortium loans to prevent a situation in which too many lenders are involved when it comes to debt resolution. #casansaar (Source - Economic Times)