Prompt Corrective Action News

IDBI Bank would endeavour to come out of the RBI's restrictive Prompt Corrective Action framework as early as possible during the current fiscal by improving its financial health

In 2019, We saw measures to revive credit growth and shore up bank balance sheets, i.e. capital infusion, reduction of policy rates, and the announcement of consolidation of ten PSBs

Eleven out of the total 21 public sector banks are under the central bank’s PCA frameworkPCA framework imposes lending restrictions and prevents them from expanding, among other curbs

Of the 21 state-owned banks, as many as 11 are under the PCA framework, which imposes lending and other restrictions on weak lenders

According to reports, Allahabad Bank, Bank of India, Bank of Maharashtra and Corporation Bank are likely to be released from the Reserve Bank of India's correctional facility for wayward lenders with depleted capital

As part of the consultative process, Das finished meeting with the public sector lender on Wednesday

Financial Services Secretary Rajeev Kumar said the government would give funds to four to five banks under a prompt corrective action plan after considering their financial results

New RBI governor Shaktikanta Das heard out a plea by the heads of seven public sector banks under the PCA framework on only his second day in office

The plan will include measures that the 11 banks, the government and the RBI will need to take to revive them, the source said

The growth in the flow of funds from banks to the commercial sector has been gaining pace almost every month in the current fiscal year