RBI removes Indian Overseas Bank out of PCA restrictions

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Mumbai : The Reserve Bank of India (RBI) on Wednesday announced that it has taken Indian Overseas Bank out of the Prompt Corrective Action Framework (PCAF). The decision has been taken after the RBI found the bank is not in the breach of the PCA parameters.

The decision will enable the public sector bank to increase their credit flow.

“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 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.  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” RBI said in a statement.

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