The Reserve Bank of India (RBI) has taken out IDBI bank from Prompt Corrective Action (PCA) framework with certain condition.
The RBI had put LIC-owned IDBI Bank under PCA in May, 2017. However, the performance of IDBI Bank Limited was reviewed by the Board for Financial Supervision (BFS) in its meeting held on February 18, 2021 and it was decided that the lender will be taken out of PCA framework.\
Further, “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,” RBI said in a statement.
“Taking all the above into consideration, it has been decided that IDBI Bank Limited be taken out of the PCA framework, subject to certain conditions and continuous monitoring,” RBI added.