Mumbai, September 20
The Reserve Bank of India on Tuesday said Central Bank of India has been removed from the Prompt Corrective Action (PCA) framework watchlist following improvement in various parameters and a written commitment that the state-owned lender will comply with the minimum capital norms.
Central Bank of India was put under the PCA framework in June 2017 due to its high net non-performing assets (NPAs) and low Return on Assets.
The RBI said the performance of Central Bank of India was reviewed by the Board for Financial Supervision and it was noted that as per the assessed figures for the year ended March 31, 2022, the bank was not in breach of the PCA parameters.
“…it has been decided that Central Bank of India is taken out of the PCA restrictions subject to certain conditions and continuous monitoring,” it said.
The lender 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 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.