Latest News | Indian Overseas Bank Shares Jump over 11 Pc as RBI Removes It from PCA Framework
Get latest articles and stories on Latest News at LatestLY. Shares of Indian Overseas Bank on Thursday jumped over 11 per cent after the Reserve Bank removed it from the Prompt Corrective Action Framework (PCAF).
New Delhi, Sep 30 (PTI) Shares of Indian Overseas Bank on Thursday jumped over 11 per cent after the Reserve Bank removed it from the Prompt Corrective Action Framework (PCAF).
The stock zoomed 20 per cent to Rs 24.60 during the day on the BSE. It closed at Rs 22.80, a gain of 11.22 per cent.
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On the NSE, it gained 11.24 per cent to close at Rs 22.75 after jumping 19.80 per cent to Rs 24.50 during the day.
The Reserve Bank on Wednesday removed Indian Overseas Bank from the Prompt Corrective Action Framework (PCAF), following improvement in various parameters and a written commitment that the state-owned lender will comply with the minimum capital norms.
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On a review of the performance of the IOB, 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 in a statement.
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, it added.
The lender has also 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," the central bank added.
IOB was placed under PCA in 2015.
(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)