IDBI Bank share price surges 17% as RBI takes it out of PCA framework
Published On: Friday, March 12, 2021 | By: Team KnowMyStock
Share of IDBI Bank opened 17 per cent higher at Rs 44.80 on the Bombay Stock Exchange after Reserve Bank of India (RBI) removed the lender from the prompt corrective action framework, subject to certain conditions and continuous monitoring. IDBI Bank was removed from the RBI's prompt corrective action (PCA) framework on Wednesday after a gap of nearly four years on improved financial performance. Under the prompt corrective action (PCA), the banking regulator restricted big-ticket loans to stem the surge in risky assets. That meant the lender was not allowed to grow and had to focus its energies on fixing its legacy dud loans and its balance sheet. The performance of the bank was reviewed by the board for financial supervision (BFS) in its meeting held on February 18, 2021, and 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.
"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 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," the bank added.
Tags: IDBI promptcorrectiveaction RBI
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