Mumbai: The Reserve Bank of India, on Tuesday said it has decided to remove state-owned Central Bank of India from the prompt corrective act-ion (PCA) restrictions following an improvement in the bank’s various parameters.
“It was noted that as per the assessed figures of the bank for the year ended March 31, 2022, the bank is not in breach of the PCA parameters,” the RBI said in a statement. It added that 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.
Of the three state-owned lenders under the RBI's PCA framework, Indian Overseas Bank and UCO Bank were removed from the watchlist earlier.
Central Bank was put under the PCA framework in June 2017 for its high net non-performing assets (NPAs) and low return on assets (RoA).
In the June 2022 quarter, Central Bank’s gross NPA fell to 14.9 per cent from 15.92 per cent in a year ago and net NPAs declined to 3.93 per cent from 5.09 per cent.
