|Mr.V.Narayanamurthy,Field Chief General Manager ,Bengaluru|
Zone, addressing the media.
The RBI has also clarified that the PCA framework is not intended to constrain
normal operations of the banks for the general public. This was confirmed by
Mr.V.Narayanamurthy,Field Chief General Manager of the bank while addressing
media. He reiterated that there is no restriction on Normal banking transactions
of the bank.The restrictions are on the following; 1.Distribution of Dividend
2.Branch Expansion,3.Incurring Capital Expenditure,& 4.Investment in
The bank has 1922 branches & 3537 ATM's pan India.The bank has reported
a loss about Rs.4000 crores.The bank has chalked out an aggressive recovery
& prevention of further slippages strategy as a priority areas for the bank.
The bank will restrict growth in the corporate loan book & focus on increasing
retail & priority sector asset base.This will help the bank to reduce risk weighted
assets & improve CAR in the short term.The bank is also planning to raise additional
capital in the medium term. The bank received capital infusion of Rs.1900 crores
through the Government of India's subscription to its preferential share allotment
earlier this year.Further, Life Insurance Corporation of India has also subscribed
to the bank's preferential equity issue. Out of the total Capital of the bank,Government
of India owns 74% equity & LIC owns 14% equity.
The bank will also reduce operational cost & sell non core assets over a period of time.