TIL Desk/Business/New Delhi/ The Reserve Bank of India (RBI) has taken off Allahabad Bank, Corporation Bank and Dhanlaxmi Bank from the Prompt Corrective Action (PCA) framework allowing them to resume their normal lending activities.
The Board for Financial Supervision (BFS) met on Tuesday to review the performance of banks under PCA and noted that the government has infused fresh capital into various banks including some of the banks currently under the PCA framework.
“PSBs turnaround continues! Strategy enables PSBs Allahabad and Corp Banks to exit PCA. Both need to continue to maintain better performance and improved prudential controls for clean banking,” Banking Secretary Rajeev Kumar tweeted.
The BFS noted that Allahabad Bank and Corporation Bank had received Rs 6,896 crore and Rs 9,086 crore respectively. This has shored up their capital funds and also increased their loan loss provision to ensure that the PCA parameters were complied with.
The two banks have also made the necessary disclosures to the Stock Exchange that post infusion of capital, the CRAR, CET1, Net NPA and Leverage Ratios are no longer in breach of the PCA thresholds, said RBI.
