The Reserve Bank of India (RBI) on Wednesday removed IDBI Bank from its Enhanced Regulatory Supervision or Prompt Corrective Action (PCA) framework, after nearly four years, on improved financial performance.
The RBI placed IDBI Bank under the framework in May 2017 as it withdrew on capital adequacy, asset quality (net NPAs were over 13% in March 2017), assets and leverage ratio.
RBI said that as per the results published for the quarter ended December 31, the bank was not in violation of PCA norms on regulatory capital, net NPA and leverage ratio.
“Considering all the above, it has been decided that IDBI Bank Limited be excluded from the PCA framework,” RBI said.
LIC-owned IDBI Bank reported a net profit of ₹ 378 crore for the December quarter.
The lender reported a net loss of ₹ 5,763 crore a year ago.
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