High net non-performing assets (NPA), insufficient common equity tier 1 (CET1) capital and negative return on assets (ROA) for two consecutive years has prompted the action, the bank said in a statement.
The RBI issues a PCA to spur lenders to deal with bad debts, as one of the measures intended to tackle the menace of bad debt that has plagued Indian banks.
The bank had a net non-performing assets ratio of 6.47 per cent as of end-September.
Shares of the bank dropped as much as 5.4 per cent to 171.45 rupees in afternoon trade in a Mumbai market that was trading 0.17 per cent higher.
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