IDBI Bank surges 17% as RBI removes lender from PCA framework

IDBI Bank's exit from the PCA framework eases the rules for lender to expand its business

Shares of IDBI Bank surged 17 per cent to Rs 44.80 on the BSE in intra-day trade on Friday after the Reserve Bank of India (RBI) removed the lender from the prompt corrective action (PCA) framework on improving finances and credit profile. This eases the rules for the lender to expand its business and also sets the stage for strategic divestment by the government which holds a 45.48 per cent stake in the firm.

RBI had placed IDBI Bank under the PCA framework in May 2017, after it had breached the thresholds for capital adequacy, asset quality (net NPAs was over