RBI imposes restrictions on Corporation Bank as its bad loans crosses 10%

The Reserve Bank of India (RBI) has imposed certain restrictions on Corporation Bank on carrying out banking activities as its share of bad loans rose sharply. This makes Corporation Bank eighth bank to face restriction in a span of 10 months. Once PCA is triggered the bank faces restrictions on expenses such as opening branches, recruiting staff and giving increments to employees. Further, the bank can disburse loans only to those companies whose borrowing is above investment grades.