RBI removes Indian Overseas Bank from Prompt Corrective Action framework

IOB is not in breach of PCA parameters as per its March quarter earnings, says RBI

Reserve Bank of India on Wednesday announced removal of Prompt Corrective Action (PCA) restrictions on Indian Overseas Bank (IOB). This decision gives the bank more freedom for lending, especially to corporations and grow the network, subject to presribed norms.

It has been decided that Indian Overseas Bank is taken out of the PCA restrictions subject to certain conditions and continuous monitoring, said the banking regulator. RBI said IOB was not in breach of PCA parameters as per its March quarter earnings.

"The bank has provided a written commitment that it would comply with the norms of Minimum Regulatory Capital, Net NPA