RBI removes Bank of India, Bank of Maharshtra, OBC from PCA regime

Bank of India, Bank of Maharashtra, Oriental Bank of Commerce can resume normal business but will be under observation

The Reserve Bank of India (RBI) on Thursday removed three public sector banks from the prompt corrective action (PCA) framework, allowing them to carry on normal business, especially lending. The three banks are Bank of India (BoI), Bank of Maharashtra (Mahabank), and Oriental Bank of Commerce (OBC). 

The central bank took this decision after reviewing the performance of these banks in the October-December (Q3) 2018-19 (FY19) quarter. The banks will, however, have to meet some norms that will ensure close monitoring.

BoI and Mahabank have met the regulatory norms, including the capital conservation buffer (CCB) and have net non-performing assets