Indian Overseas Bank taken out of RBI's PCA framework

Mumbai, Sep 29 The Reserve Bank of India has taken the Indian Overseas Bank out of prompt corrective action framework (PCAF).

The bank was taken out of the PCAF, subject to certain conditions and continuous monitoring.

The development comes after the Board for Financial Supervision noted that the bank was not in the breach of the PCA parameters, as per its published results for the year ended March 31, 2021.

"The bank 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...," the RBI said in a statement.

"... 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."