The All India Bank Employees Association (AIBEA) has urged RBI Governor Urjit Patel to revoke lending restrictions on Dena Bank, claiming the move will deteriorate its financial health further.
In view of high non-performing assets (NPAs), the Reserve Bank of India (RBI) last month had initiated prompt corrective action (PCA) against Dena Bank, restricting the lender from giving fresh credit and conducting new hirings.
“We regret that Reserve Bank of India has made a virtual embargo on any lending in Dena Bank. Chocking the bank’s lending operations will further deteriorate its health,” AIBEA general secretary CH Venkatachalam said in a letter dated June 10 addressed to the RBI governor.
“The step has created undue panic in the minds of the bank’s customers and employees,” AIBEA general secretary CHVenkatachalam added.