India News | Will Withdraw PCA Only if Bank is 'fit Case': RBI Das
Get latest articles and stories on India at LatestLY. The Reserve Bank of India on Friday said it keeps reviewing the position of public sector banks that are under its prompt corrective action (PCA) framework and will take a call on withdrawal only if it is a "fit case", RBI Governor Shaktikanta Das said on Friday.
Mumbai, Aug 6 (PTI) The Reserve Bank of India on Friday said it keeps reviewing the position of public sector banks that are under its prompt corrective action (PCA) framework and will take a call on withdrawal only if it is a "fit case", RBI Governor Shaktikanta Das said on Friday.
Currently, there are three public sector lender — Indian Overseas Bank (IOB), UCO Bank and Central Bank of India — that are under the RBI's PCA framework.
Also Read | AP SSC Result 2021 Declared, Students Can Check Class 10 Scores Online on BSEAP Website bse.ap.gov.in.
"We keep on reviewing that position. As and when requests are received, we analyse it. If it meets our regulatory requirements, and if in our assessment, we feel confident that it's a fit case, the RBI will do the needful," Das told reporters in the post-policy conference.
He said the RBI has been taking banks out of the PCA framework.
In March this year, the RBI had removed IDBI Bank from PCA framework, which was imposed in May 2017.
RBI Deputy Governor M K Jain said there are certain banks that are in the PCA framework and the central bank is examining those lenders.
"As and when the time comes, we will definitely announce the withdrawal of PCA (of those banks)," Jain said.
Earlier this week, IOB Managing Director and CEO Partha Pratim Sengupta said the lender's application for exiting PCA is under consideration of the regulator.
"We have replied to their queries. They must be looking at the various other aspects before taking a decision in this regard. We are waiting for it," Sengupta told reporters during the Q1 earnings call.
The PCA framework is a supervisory tool and is imposed when a bank breaches certain regulatory thresholds — capital-to-risk weighted assets ratio (CRAR), net non-performing assets (NPA) and return on assets (RoA). HRS hrs
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)