RBI removes Indian Overseas Bank from PCA restrictions
The performance of the Indian Overseas Bank was reviewed by the Board for Financial Supervision
The Reserve Bank of India (RBI) on Wednesday removed Indian Overseas Bank (IOB) from the Prompt Corrective Action Framework (PCAF). The performance of the bank 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.
The RBI also said that 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.
The bank 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 central bank said in a statement.
“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 statement said.
Earlier this month, the central bank removed UCO Bank from PCA restrictions.
This came following improvement in various parameters and a written commitment that the state-owned lender will comply with the minimum capital norms.
The Board for Financial Supervision on the basis of the published financial results for 2020-21 found that the bank was not in breach of the PCA parameter, the RBI said
It said the bank has also provided a written commitment that it would comply with the norms of Minimum Regulatory Capital, Net NPA and Leverage ratio on an ongoing basis.
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