Three Banks Taken out of the PCA framework

The Reserve Bank of India has taken three public sector banks — Bank of India, Bank of Maharashtra and Oriental Bank of Commerce — out of the Prompt Corrective Action (PCA) framework and lifted various restrictions on lending and expansion of businesses.

Key Points

• According to the RBI, on a review of the performance of PSU banks currently under the PCA framework, it was noted that a few banks are not in breach of PCA parameters as per their published results for the December 2018 quarter, except Return on Assets (RoA). However, though the RoA continues to be negative, the ....