RBI removes Allahabad Bank, Corporation Bank and Dhanlaxmi Bank from PCA framework
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In a statement, RBI said the Board for Financial Supervision (BFS) reviewed the performance of banks under PCA and noted that the government has infused fresh capital on February 21 into various banks including some of the banks currently under the PCA framework.
"Of these banks, the Board for Financial Supervision (BFS) noted that Allahabad Bank and Corporation Bank had received Rs 6896 crore and Rs 9086 crore respectively. This has shored up their capital funds and also increased their loan loss provision to ensure that the PCA parameters were complied with," RBI said.
The release noted that the two banks made the necessary disclosures to the Stock Exchange and after the infusion of capital, the CRAR, CET1, Net NPA and Leverage Ratios are no longer in breach of the PCA thresholds.
The release also noted that the banks also apprised RBI of the structural and systemic improvements put in place to maintain these numbers and based on the principles adopted by the BFS, decided to remove Allahabad Bank and Corporation Bank from the PCA framework.
Bank of India (BoI), Bank of Maharashtra (BoM) and Oriental Bank of Commerce (OBC) were taken out of PCA framework on January 31 after infusion of capital in these banks. #casansaar (Source - PTI, MoneyControl)
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