The correct answer is (A) & (B) only. Reserve Bank has initiated prompt corrective action against public sector lender Dena Bank in view of high non-performing loans. restricting the bank from giving fresh credit and new hiring. Reserve Bank of India, vide their letter dated May 31, 2017, has initiated Prompt Corrective Action for Dena BanIt imposed certain restrictions, in view of high Net NPA and negative RoA ( return on assets). Banks asset quality has worsened with the gross NPAs hitting a high of 22. 4 percent of the gross advances as of March 31, 2018, from 16. 27 percent as of end-March 2017. Hence, option 2 is correct. Additional InformationPrompt Corrective Action or PCA is a framework under which banks with weak financial metrics are put under watch by the RBI. The PCA framework deems banks as risky if they slip below certain norms on three parameters Capital ratios, asset quality, and profitability. Allahabad Bank had informed about being placed under RBIs PCA mechanism. The RBI has initiated similar action against other public sector banks, including IDBI Bank, Indian Overseas Bank, and UCO Bank before this. The RBI in April 2017 had issued a new set of enabling provisions under the revised PCA framework with a clause. if the bank does not show improvement then it could be either be merged or taken over by another bank.