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Indian Overseas Bank Out Of PCA Framework: RBI

Meanwhile, the Central Bank had also removed UCO Bank from the PCA framework, earlier this month.

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The Reserve Bank, on Wednesday, said that it has taken out the Indian Overseas Bank from its Prompt Corrective Action (PCA) framework, amid several conditions and continuous monitoring. 

Now, after this step, Indian Overseas Bank is not going to witness strict lending restrictions, implemented by the Central Bank.

The RBI in a statement said, "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 breach of the PCA parameters."

Taking all the above into consideration, it has been decided that Indian Overseas Bank is taken out of the PCA restrictions subject to certain conditions and continuous monitoring.

"The 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 statement added. 

Meanwhile, the Central Bank had also removed UCO Bank from the PCA framework, earlier this month.


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