Indian Overseas Bank (IOB) has been taken out of Prompt Corrective Action (PCA) restrictions subject to certain conditions and continuous monitoring, the Reserve Bank of India (RBI) said on Wednesday.
“The performance of the Indian Overseas Bank, currently under the Prompt Corrective Action Framework (PCAF) of RBI, was reviewed by the Board for Financial Supervision,” the RBI said in a statement. “It was noted that as per its published results for the year ended March 31, 2021, the bank is not in the breach of the PCA parameters,” the RBI added.
“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 regulator said. Taking all the above into consideration, it has been decided to remove the restrictions, the RBI added.