Categories: Banking

RBI removes PCA restrictions on IDBI Bank

The Reserve Bank of India has removed IDBI Bank from its enhanced regulatory supervision or Prompt Corrective Action (PCA) framework. It was noted that as per published results for the quarter ending December 31, 2020, the bank is not in breach of the PCA parameters on regulatory capital, net NPA and leverage ratio.

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The bank has also 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 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.

Returns to profit in Dec quarter

The central bank had placed IDBI Bank under the PCA framework in May 2017 after it had breached the thresholds for capital adequacy, asset quality, return on assets and the leverage ratio
The bank had reported a standalone net profit of Rs 378 crore for the December quarter of 2020-21 compared to a standalone net loss of Rs 5,763 crore in the year-ago quarter.

Important takeaways for all competitive exams:

IDBI Bank CEO: Rakesh Sharma.
IDBI Bank Headquarters: Mumbai, Maharashtra.

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Sumit Arora

As a team lead and current affairs writer at Adda247, I am responsible for researching and producing engaging, informative content designed to assist candidates in preparing for national and state-level competitive government exams. I specialize in crafting insightful articles that keep aspirants updated on the latest trends and developments in current affairs. With a strong emphasis on educational excellence, my goal is to equip readers with the knowledge and confidence needed to excel in their exams. Through well-researched and thoughtfully written content, I strive to guide and support candidates on their journey to success.