The Reserve Bank of India (RBI) has lifted the prompt corrective action (PCA) restrictions it had imposed on Central Bank of India (CBoI).
The lifting of the PCA restrictions is subject to certain conditions and continuous monitoring. With this, no public sector bank remains under PCA.
RBI had put the Bank under PCA in June 2017 in view of high net Non-Performing Assets and negative Return on Assets.
PCA parameters
At a review of CBoI’s performance by the Board for Financial Supervision, it was noted that as per the assessed figures of the bank for the year ended March 31, 2022, the bank is not in the breach of the PCA parameters.
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.
BK Divakara, former Executive Director of CBoI, observed that several years of struggle and painstaking efforts put in by Centralites to bring the Bank out of PCA has finally paid rich dividend.