RBI takes UCO Bank out of PCA framework over improved finances

The Kolkata-based lender was placed under PCA in May 2017 on account of high net NPAs and negative RoA

Reserve Bank of India on Wednesday has taken public sector lender UCO Bank out of Prompt Corrective Action (PCA) framework (PCA) on improvement in financial and credit profile. This decision gives the bank more freedom for lending, especially to corporations and grow the network, subject to presribed norms.

The Kolkata-based lender was placed under PCA in May 2017 on account of high Net Net-Performing Assets (NPAs) and negative Return on Assets (RoAs).

As of March 2021, its net NPAs declined to 3.94 per cent from 8.54 per cent in March 2017 (FY17). It posted a net profit of Rs 167