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State-run banks face RBI clamp down as key ratios deteriorate

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The Reserve Bank of India may impose restrictions on state-owned banks which have reported lower than 0.25 per cent return on assets (RoA) due to a mountain of bad debts that has put pressure on profitability.

These include accessing or renewing costly deposits like certificate of deposits, entering into new lines of business, borrowings from inter-bank market, making dividend payments and expanding its staff. As many as 13 listed public sector banks, out of 21, reported lower than 0.25 per...

State-run banks face RBI clamp down as key ratios deteriorate

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