Industry

LIC-owned IDBI Bank exits PCA framework

The Reserve Bank of India (RBI) on Wednesday removed IDBI Bank from its enhanced regulatory supervision, or the Prompt Corrective Action (PCA) framework, after almost four years, on improved financial performance.

The RBI had placed IDBI Bank under the framework in May 2017, after it had breached the thresholds for capital adequacy, asset quality (net NPAs were over 13% in March 2017), return on assets and leverage ratio.

It was noted as per published results for the quarter ended December 31, the bank was not in breach of the PCA parameters on regulatory capital, net NPA and leverage ratio, the RBI said.

“Taking all the above into consideration, it has been decided that IDBI Bank Ltd. be taken out of the PCA framework,” the RBI said.

The LIC-owned IDBI Bank had reported a standalone net profit of ₹378 crore for the December quarter.

The lender had reported a net loss of ₹5,763 crore a year earlier.


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Printable version | Jun 24, 2021 10:23:21 PM | https://www.thehindu.com/business/Industry/lic-owned-idbi-bank-exits-pca-framework/article34039143.ece

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