RBI wants IDBI Bank to come out of PCA framework before stake sale

The government's shareholding in the lender is 47.11 per cent, while LIC holds 51 per cent in it

The government and Life Insurance Corporation (LIC) of India should allow IDBI Bank to come out of the prompt corrective action (PCA) framework before they go ahead with the stake sale in the lender, the Reserve Bank of India (RBI) has suggested.

The banking regulator’s view is that the government’s plan to exit IDBI Bank would send a wrong signal, portraying the lender as “weak” and the one which is in “more trouble”, said a key source aware of the development. “This is contrary to the current position,” he said. An evaluation of the PCA framework is due by the