New Delhi: Indian Overseas Bank (IOB) has been taken out of the Prompt Corrective Action Framework (PCAF) by the Reserve Bank of India (RBI). The decision was taken following improvement in various parameters and a written commitment that the state-owned lender will comply with the minimum capital norms. Following the move by India’s central bank, shares of IOB witnessed a jump of 20 per cent at BSE. At the NSE, it gained 19.80 per cent, as per PTI report.
On a review of the performance of the IOB, the Board for Financial Supervision on the basis of the published financial results for 2020-21, found that the bank was not in breach of the PCA parameter, the RBI said in a statement, PTI reported.
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, it added, according to PTI report.
The lender has also 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 report said.
“Taking all the above into consideration, it has been decided that Indian Overseas Bank is taken out of the PCA restrictions subject to certain conditions and continuous monitoring,” RBI stated.
IOB was placed under PCA in 2015, as per a PTI report.
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