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Dictionary pruning step is often employed prior to the sparse unmixing process to improve the performance of library aided unmixing. This paper presents a novel recursive PCA approach for dictionary pruning of linearly mixed hyperspectral data motivated by the low-rank structure of a linearly mixed hyperspectral image. Further, we propose a mutual coherence reduction method for pre-unmixing to enhance the performance of pruning. In the pruning step we, identify the actual image endmembers utilizing the low-rank constraint. We obtain an augmented version of the data by appending each image endmember and compute PCA reconstruction error, which is a convex surrogate of matrix rank. We identify the pruned library elements according to PCA reconstruction error ratio (PRER) and PCA reconstruction error difference (PRED) and employ a recursive formulation for repeated PCA computation. Our proposed formulation identifies the exact endmember set at an affordable computational requirement. Extensive simulated and real image experiments exhibit the efficacy of the proposed algorithm in terms of its accuracy, computational complexity and noise performance. [ABSTRACT FROM AUTHOR]