RBI takes IDBI Bank out of PCA framework after lender improves finances

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

Private lender IDBI Bank is out of prompt corrective action (PCA) after improving its finances and credit profile, the Reserve Bank of India (RBI) said on Wednesday. This eases the rules for the lender to expand business. This also sets the stage for strategic divestment by the Government of India, which holds 45.48 per cent stake.

The RBI in a statement said its board for financial supervision had reviewed the performance of IDBI Bank at its meeting on February 18. According to published results for the quarter ended December 31, 2020, the bank is not in breach of the PCA