March 11, 2021 3:46:04 am
The Reserve Bank of India (RBI) has taken out IDBI Bank from the prompt corrective action (PCA) framework, subject to certain conditions and continuous monitoring. The bank was put under PCA framework in May 2017, slapping curbs on expansion, investments and lending.
According to the RBI, it was noted that as per published results for the quarter ended December 31, 2020 the bank is not in breach of the PCA parameters on regulatory capital, net NPA and leverage ratio. “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,” the RBI said. “The performance of IDBI Bank, currently under the prompt corrective action framework of the RBI, was reviewed by the Board for Financial Supervision (BFS) in its meeting held on February 18, 2021,” it said.
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