Connect with us

Business News

RBI removes Indian Overseas Bank from immediate corrective action framework



In October 2015, RBI placed Indian Overseas Bank under the PCA framework.

New Delhi: The Reserve Bank of India (RBI) on Wednesday decided to remove Indian Overseas Bank from the Prompt Corrective Action (PCA) framework. The Reserve Bank in a notification said, “The performance of Indian Overseas Bank has been reviewed by the Board of Financial Supervision. It is noted that as per its published results for the year ended March 31, 2021, the bank is not in the PCA standards. Breach of.”

The central bank noted that the lender has provided a written commitment that it will adhere to the norms of minimum regulatory capital, net NPA (non-performing assets) and leverage ratio on an ongoing basis.

The RBI also said that the state-run lender has also informed about structural and systemic reforms.

“Keeping in view all of the above, it has been decided that Indian Overseas Bank be excluded from the PCA restrictions subject to certain conditions and continuous monitoring,” the Reserve Bank said.

In October 2015, RBI placed Indian Overseas Bank under the PCA framework.

Currently, the Indian central bank is the only lender under the PCA framework of the RBI.

Earlier this month, the central bank decided to pull UCO Bank out of the PCA framework.

The PCA framework is a supervisory tool that is imposed when a bank violates certain regulatory limits, for example, capital-to-risk-weighted assets ratio (CRAR), net NPA and return on assets (ROA).


Copyright Indian Lekhak Limited 2021. All Rights Reserved