RBI said the bank is committed to complying with the norms of Minimum Regulatory Capital, Net NPA, and Leverage ratio on an ongoing basis. It has also appraised the structural and systemic improvements made which would help the lender in continuing to meet these commitments, RBI added.
Reserve Bank of India today removed the Central Bank of India from the Prompt Corrective Action (PCA) framework on complying with parameters like net non-performing assets (net NPAs) and capital ratios.
While removal paves way for normal functioning for business growth, Mumbai-based public sector lenders would still be subject to certain conditions and continuous monitoring.
RBI had placed Central Bank under PCA in June 2017 due to high net NPAs and negative returns on assets. Central Bank was the last of the public sector lenders to come out of PCA. Indian Overseas Bank and UCO Bank were removed from the framework last September. Central Bank’s stock closed 0.49 percent up at Rs 20.35 per share on BSE on Tuesday.
RBI said in a statement that Central Bank’s performance was reviewed by the Board for Financial Supervision. According to the assessed figures of the bank for the year ended March 31, 2022, the lender is not in breach of the PCA parameters.
Its net NPAs stood at 3.93 percent at end of June 2022, down from 10.20 percent in March 2017. The capital adequacy ratio was 13.33 percent at the end of June 2022, up from 10.95 percent in March 2017. The bank has maintained that it was complying with the parameters under the PCA framework of the RBI for five quarters.
RBI said the bank is committed to complying with the norms of Minimum Regulatory Capital, Net NPA, and Leverage ratio on an ongoing basis. It has also appraised the structural and systemic improvements made which would help the lender in continuing to meet these commitments, RBI added.
