NEW DELHI: Shares of Dena Bank tanked over 12 per cent in Monday's trade after Reserve Bank of India (RBI) directed the bank not to issue any fresh loans and hire new personnel in the wake of mounting non-performing assets (NPAs).The RBI has initiated prompt corrective action (PCA) for Dena Bank and imposed certain restrictions, in view of high Net NPA and negative return on assets, Dena Bank said in a filing to BSE."We wish to inform that the RBI vide their letter dated May 07, 2018 (received by the Bank on May 08, 2018) has restricted the Bank from assuming fresh credit exposure and recruitment of staff," the bank said.
The stock fell 12.47 per cent to Rs 16.15 on BSE.Dena is among 11 banks on RBI's watchlist.
Others banks on the list are Allahabad Bank, United Bank of India, Corporation Bank, IDBI Bank, UCO Bank, Bank of India, Central Bank of India, Indian Overseas Bank, Oriental Bank of Commerce, Dena Bank and Bank of Maharashtra.Together, these banks account for Rs 52,311 crore of the Rs 88,139-crore capital infusion plan (through bonds and budgetary support) announced by the government for 2017-18, PTI reported.The RBI is likely to impose certain restrictions on couple of more public sector lenders under the Prompt Corrective Action (PCA) mechanism due to worsening asset quality, the report added.