Dena Bank will request RBI to modify lending ban order

Senior Dena executives said the new order would have a severe impact on lending and revenue

Dena Bank will request the Reserve Bank of India (RBI) to modify the order of last week which bans any new lending by it.

In the middle of last year, the government-owned lender was put under the ‘Prompt Corrective Action’ framework, meant to stop things getting worse at ailing banks. However, it is the first under this restrictive umbrella to also be told to stop all new lending.

RBI took the extra step after more bad news from Mumbai-based Dena. 
 

It has made losses for three financial years in a row and its proportion of net non-performing assets to advances