Furthermore, the central bank stated that this action is based on deficiencies in regulatory compliance, and not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. In May last year, the RBI had invoked prompt corrective action (PCA) on the state-owned Bank due to its bad loans and return on assets (ROA). However, IDBI in a regulatory filing had stated that the action would not have any material impact on the performance of the bank, adding that it would contribute to improving internal monitoring and improve its activities. On a related note, the RBI in May imposed a penalty of Rs 589 million on ICICI Bank Limited for non-compliance with directions issued on direct sale of securities from its Held to Maturity (HTM) portfolio and specified disclosure in this regard.