Central Bank Of India Gets Relief, RBI Removed From PCA's Watch List

The Reserve Bank of India on Tuesday said that the Central Bank of India has been removed from the Prompt Corrective Action (PCA) framework watchlist following improvement in various parameters and a written commitment that the state-owned lender will comply with the minimum capital norms.

The Central Bank of India has gotten a big relief from the RBI. RBI has removed him from the Prompt Corrective Action (PCA) watch list. After the removal of these restrictions, the Central Bank of India will now be able to disburse loans without any restrictions. 

The RBI said the performance of Central Bank of India was reviewed by the Board for Financial Supervision and it was noted that as per the assessed figures for the year ended March 31, 2022, the bank was not in breach of the PCA parameters.

According to the RBI, the board of directors reviewed the Central Bank's performance for financial supervision.  “It was noted that as per the assessed figures of the bank for the year ended March 31, 2022, the bank is not in the breach of the PCA parameters. The bank has provided a written commitment that it would comply with the norms of minimum regulatory capital, net NPA (Non-Performing Assets), 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 RBI stated “.