Insta
The Reserve Bank of India headquarters in Mumbai. (GettyImages)
The Reserve Bank of India (RBI) on Thursday announced that it is removing Bank of India and Bank of Maharashtra from its prompt corrective action plan (PCA) for state-owned banks loaded high levels of bad debt and inadequate capital, Bloombergquint reported.
The RBI also removed another state owned bank Oriental Bank of Commerce from restrictions under the PCA framework, but said it will monitor the bank closely.
Under RBI’s PCA policy, 11 public sector banks and one private one were asked between February 2014 and January 2018 to shrink lending to all but retail customers. They also were asked to curtail branch expansion and scrap dividends.
"Bank of India and Bank of Maharashtra, which meet the regulatory norms including the Capital Conservation Buffer and have net NPAs (non performing assets) of less than 6 percent as per third quarter results, are taken out of the PCA framework," the RBI said in a statement.
The RBI's board for financial supervision chaired by governor Shaktikanta Das took the decision at its meeting on Thursday after reviewing the latest quarterly performance of all 11 banks on the PCA list.
Bank of India's net non-performing assets fell to 5.87 per cent in the October-December quarter from 7.64 per cent in July-September. Its capital adequacy ratio improved to 12.47 per cent from 10.93 per cent.
Introducing ElectionsHQ + 50 Ground Reports Project
The 2024 elections might seem easy to guess, but there are some important questions that shouldn't be missed.
Do freebies still sway voters? Do people prioritise infrastructure when voting? How will Punjab vote?
The answers to these questions provide great insights into where we, as a country, are headed in the years to come.
Swarajya is starting a project with an aim to do 50 solid ground stories and a smart commentary service on WhatsApp, a one-of-a-kind. We'd love your support during this election season.
Click below to contribute.
Latest