IOB, which is under the Reserve Bank of India's PCA framework, had last posted profit in June 2016
In May 2017, the central bank had initiated PCA against the lender due to high non-performing assets and negative return on assets
The Reserve Bank in May 2017 had placed the IDBI Bank in the PCA framework because of the deterioration in the financial health of the bank
With this 84% of the bank's depositors will be able to withdraw their entire money deposited with it
The bank's credit portfolio grew by 1.52 per cent to Rs 94,889 crore in March, 2020
Currently, Indian Overseas Bank (IOB), Central Bank of India, UCO Bank and United Bank of India are under this framework
The truth is - falling market share of state-run banks is not something many will want to comment on record
The headroom will not be available in FY21, unless public sector banks are adequately recapitalised
The PCA framework kicks in when banks breach any of the three key regulatory trigger points namely capital to risk weighted assets ratio, net non-performing assets (NPA) and return on assets (RoA).
Das explained placing a lender under PCA framework is normal with lot of precedents
The bank said PCA would not have any adverse impact on its daily operations
At present, 11 out of 21 PSBs, which constitute about 20% of the market share, are already under the PCA framework