Rs 114-billion PNB scam: Govt weighs bank's recapitalisation hike

Lender may also be put under RBI's prompt corrective action framework

The recapitalisation amount earmarked for Punjab National Bank (PNB) by the Centre is set to increase with the unravelling of the Rs 114 billion letters of undertaking (LoUs) scam. PNB’s performance metrics are also being reviewed to see if it requires to be put on the Reserve Bank of India’s list for prompt corrective action (PCA), sources familiar with the developments said.

Additionally, a number of banking sector reforms that have been on the back burner for some time may be expedited. The plans include the privatisation of IDBI Bank, widespread board and management changes in state-owned banks, and tightening