To due high rise in prices of onions in domestic market, government has prohibited its export until further notice.
Prices in wholesale markets across the onion-growing Maharashtra has been increasing since May this year, which has inflated the retail prices of onion to Rs 60-80 per kg in Delhi and some other parts of the country.
The current increase in onion prices is a fallout of last year’s drought and the delayed monsoon this year. To add to the woes, some onion-growing areas have reported excessive rain, and harvest period has been delayed by a week or so.
The central bank has placed Lakshmi Vilas Bank under prompt corrective action (PCA) owing to high level of bad loans, insufficient capital adequacy ratio, negative return on assets (RoA) for two consecutive years and high leverage.
This action is said to be based on the central bank’s risk-based supervision for FY19.
Under PCA, banks are mandated to cut lending to corporates and focus on reducing concentration of loans to certain sectors. They are also restricted from opening new branches and paying dividends.
Banks currently under PCA are United Bank of India, Indian Overseas Bank, Central Bank of India, IDBI Bank and UCO Bank.