Allahabad Bank is amongst the top three losers on the BSE since the opening bell. The stock price sipped almost 3% to Rs.70.40. Its 52-week high and low stands at Rs.92.50 and Rs.61.50 respectively.

Yesterday, RBI announced that it has placed the bank under Prompt Corrective Action Framework, consequent to the on-site inspection under the Risk Based Supervision Model carried out for the year ended March, 2017.

The RBI inspection has shown what we knew all along – high net NPAs and negative Return on Assets (RoA) for two consecutive years.

This action from the RBI is imperative to get the bank back on its feet, with an improvement in risk management, asset quality, profitability, efficiency of the bank.

If one may recollect, RBI has initiated similar action against three more banks – IDBI Bank, Indian Overseas Bank and UCO Bank.