Prompt Corrective Action-hit Dena Bank customers to get loans post merger
RBI had put Dena Bank under Prompt Corrective Action, meaning that the banks had to freeze all its lending till it brings its bad loans under control.
The merger of Dena Bank with Bank of Baroda will restart fresh loans to former’s clients. About a year ago, RBI had put Dena Bank under Prompt Corrective Action, meaning that the banks had to freeze all its lending till it brings its bad loans under control. This had stopped new disbursement of loans to its clients. “However, with the merger of Dena Bank and Vijaya Bank with Bank of Baroda, overall NPA is under control and so clients of Dena Bank will now be able to get fresh loans,” said KV Tulshibagwale, GM of Ahmedabad Zone of Bank of Baroda. GCCI president Jaimin Vasa said that this will improve the confidence of all the stake holders.