Reserve Bank of India (RBI) has put Bank of India under Prompt Corrective Action, due to bad asset quality performance.

Bank of India stated, “This is in view of high net NPA, insufficient CET1 Capital and negative return on assets for two consequent years.”

Further, the bank informed exchanges that, this action is a result of the onsite inspection under the Risk Based Supervision Model carried out for year ended March 2017, and the report issued thereof. Moreover it also stated that, this step will lead to overall improvement in risk management, asset quality, profitability, efficiency, etc of the bank.

Read EquityPandit’s Technical Analysis on Nifty Bank