Central Bank is out of PCA framework, RBI has given good news, restrictions on ‘this’ reputed bank have been removed… – rbi takes out central bank from its pca prompt corrective action framework IG News

Mumbai: The Reserve Bank of India has decided to exclude the Central Bank from the PCA Framework i.e. Prompt Corrective Action Framework. After this decision of RBI, now many restrictions on banks will be removed. It is worth noting that the Central Bank was on the PCA list since 2017. The bank was placed under PCA framework by RBI due to poor financial performance. Bank’s Non-Performing Assets (NPAs) have increased and Turn on Assets (ROA) has decreased.

Earlier, Indian Overseas Bank, UCO Bank and IDBI Bank were also included in this list, but later all these banks were removed from this list. In such a situation, only the Central Bank (Central Bank of India) was left in the PCA framework. Along with this, the Central Bank has also given a written assurance to comply with all these rules. In such circumstances, RBI has decided to exclude the bank from the list of PCA framework.

In preparation for retrenchment of OLA employees, notice sent to so many employees

RBI took the decision after review

The Reserve Bank has issued a press release giving information in this regard. The RBI has taken this decision after reviewing the performance of the Central Bank of India over the past few years, it has been informed in this press release. The RBI has observed that the Central Bank has duly followed all the norms suggested by the RBI during the financial year 2021-22. Along with this, the Central Bank has also given a written assurance to comply with all these rules. In such circumstances, RBI has decided to exclude the bank from the list of PCA framework.

Good news for farmers, 50 thousand rupees will be deposited in the account; This bank gives

Amendments made to Central Bank records

Last year, several banks like UCO Bank, Indian Overseas Bank and IDBI Bank also came out of RBI’s PCA framework. In the quarter ended June 2022, the net profit of the Central Bank has increased by 14.20 percent. The net profit of the bank is more than 234 crores. Talking about last year, the bank’s profit till June quarter was Rs 205 crore. The central bank had submitted a report to the RBI, in which it was stated that the performance of the bank has been improving steadily in the last 5 quarters.

Mukesh Ambani performed pooja at Kerala’s Guruvayur temple, the biggest ever

Why are banks kept in PCA framework?

The Reserve Bank of India brings banks under the PCA framework when a bank’s financial condition begins to deteriorate. Banks are brought under the ambit of PCA framework due to rising NPAs, capital depletion and return on assets. The PCA framework imposes various restrictions on the inclusion of a name in the list. In this, many important works like opening of new branches, pension allowances to the management have been banned. In such a situation bank investors are also asked to increase their capital investment. RBI monitors the performance of a bank included in the PCA framework and only after its financial condition improves, the bank is taken out of the PCA framework.