"We have to inform you that the Reserve Bank of India vide letter dated January 2, 2018 received by the bank on date has placed the bank under Prompt Corrective Action Framework, consequent to the on-site inspection under the Risk Based Supervision Model carried out for the year ended March, 2017," the bank said in a regulatory filing.
The RBI inspection has revealed high net NPAs (non performing assets) and negative ROA (return on assets) for two consecutive years, it said further.
"The action will contribute to the overall improvement in risk management, asset quality, profitability, efficiency of the bank," the lender said.
For the fiscal 2016-17, the bank had trimmed its net losses to Rs 313.51 crore against Rs 743.31 crore in 2015-16. The RBI has initiated similar action against other public sector banks, including IDBI Bank, Indian Overseas Bank and UCO Bank.
Shares of Allahabad Bank closed at Rs 72.35 apiece, up 0.28 per cent on BSE.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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