The Reserve Bank of India has removed the Central Bank of India from the Prompt Corrective Action (PCA) framework after it found the bank was not in breach of any parameters.
But, the bank is being taken out of the restrictions subject to “certain conditions and continuous monitoring”, RBI said on Tuesday. “The performance of the Central Bank of India, currently under the Prompt Corrective Action Framework (PCAF) of RBI, was reviewed 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 breach of the PCA parameters,” RBI said in a statement.
RBI in the statement said the Central Bank of India 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 of the structural and systemic improvements that it has put in place which would help the bank in continuing to meet these commitments.
In June 2017, RBI had reportedly placed Central Bank under PCA due to high net non-performing assets.
Prompt Corrective Action (PCA) is a framework under which the central bank put financially weak banks under watch.