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Indian central bank places Oriental Bank of Commerce under tighter scrutiny

India's central bank placed Oriental Bank of Commerce under prompt corrective action due to the lender's high net nonperforming assets.

The bank said Oct. 7 that the action will not have any material impact on its performance, but will contribute to the overall improvement of its risk management, asset quality, profitability and efficiency.

The central bank's decision will restrict the bank from opening new branches, hiring staff and lending to subinvestment-grade companies, The Economic Times reported Oct. 7.

Other banks that have been placed under the central bank's prompt corrective action include Dena Bank, Central Bank of India and IDBI Bank Ltd.