RBI lifts prompt corrective action restrictions on Central Bank of India
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.
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.
A study of recent bank failures would show that bank NPAs were a consequence of the lending of funds beyond the repaying capacity of borrowers. Most of such lending was motivated; the creditworthiness of the borrower was overestimated for extraneous considerations.
Jaitley said greater confidence among bankers, coupled with good growth, would ultimately lead to banking activity picking up.
