India's central bank has initiated "prompt corrective action" for state-run Bank of Maharashtra Ltd because of its high level of bad loans, the lender said in a stock exchange filing on Saturday. The mid-sized institution is the fifth state-run lender to come under curbs since the Reserve Bank of India (RBI) tightened the corrective action framework in April to help cut the $150 billion of troubled loans afflicting banks.
Bank of Maharashtra said the corrective actions will not have any material impact on its performance, but will help strengthen its internal controls, and improve asset quality and profitability.