Current Affairs - Banking - Discussion

Dena Bank has announced that Reserve Bank of India has restricted it from taking fresh credit exposure and recruiting new staff. It is to be noted that RBI initiated prompt corrective action against Dena Bank and imposed certain restrictions in May 2017 owing to high net non performing assets (NPA) and negative Return on Assets. The fresh restriction has been imposed in wake of deteriorated financial performance for the 4th quarter of 2017-18. For fourth quarter ended March 31, 2018, Dena Bank reported a net loss of Rs 1225 crore, which is much wider than the net loss of Rs 575 crore recorded in the same quarter last year. In addition to this, for the financial year 2017-18, Dena Bank recorded a net loss of Rs 1924 crore marking a third consecutive year of net loss.