Off the PCA hook, banks bet on loans to small biz and agriculture sector

Exiting the Reserve Bank of India’s (RBI’s) prompt corrective action (PCA) framework may not exactly be a lease of life for banks. However, it certainly paves the way for them to scale up their loan book, especially to retail, micro, small & medium enterprises (MSME) and the agriculture sector.

Senior executives of banks that have come out of the PCA said lenders were engaged in improving credit underwriting standards under the framework. 

The Reserve Bank of India (RBI) has taken out six of the 12 banks from PCA. Bank of India (BoI), Bank of Mahar­ashtra (Mahabank), and Oriental