PCA Banks

Rao says he doesn't foresee much flight of CASA money into term deposits as deposit rates are hiked

Bad loans in some NBFCs will definitely rise but no one should complain. They are no longer shadow banks

There are about 10,000 NBFCs registered with the RBI, but only a few that can potentially face these PCA restrictions

PCA will be activated for large NBFCs once their capital adequacy falls by 300 bps, or net NPA ratio rises above 6%

The capital position of banks will be reviewed in the next quarter for infusion requirement

The government in the last round had infused Rs 14,500 crore of equity in Central Bank of India, Indian Overseas Bank, Bank of India, and UCO Bank

Deck clears for government's stake sale; improvement in lender's finances key to invoke investor interest

IDBI Bank has been under the PCA framework since 2017 because of the deterioration in its health

IOB, which is under the Reserve Bank of India's PCA framework, had last posted profit in June 2016

The bank's credit portfolio grew by 1.52 per cent to Rs 94,889 crore in March, 2020

Das explained placing a lender under PCA framework is normal with lot of precedents

The officials also said all these steps have been taken jointly by the government and the regulators after an extensive and continuous consultation process