RBI removes Indian Overseas Bank from Prompt Corrective Action Framework
The Reserve Bank of India (RBI) has removed the Indian Overseas Bank from the Prompt Corrective Action Framework (PCAF) after reviewing the bank’s financial status.
The Reserve Bank of India (RBI) on Wednesday removed the Indian Overseas Bank from the Prompt Corrective Action Framework (PCAF). However, announcing the decision, the Central Bank further said that the bank is taken out of the PCA restrictions subject to certain conditions and continuous monitoring.
According to the RBI, the decision was arrived at after reviewing the published results of the Indian Overseas Bank for the FY21.
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“The performance of the Indian Overseas Bank, currently under the Prompt Corrective Action Framework (PCAF) of RBI, was reviewed by the Board for Financial Supervision. It was noted that as per its published results for the year ended March 31, 2021, the bank is not in the breach of the PCA parameters,” the RBI said in a statement.
Notably, the Indian Overseas Bank has provided a written commitment that it would comply with the norms of Minimum Regulatory Capital, Net NPA and Leverage ratio on an ongoing basis and has apprised the RBI of the structural and systemic improvements that it has put in place which would help the bank in continuing to meet these commitments.
The RBI’s decision comes within three weeks of removing the UCO Bank from the PCA framework on September 8, 2021 after reviewing the bank’s financial status.
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