Mumbai, Sep 8 The Reserve Bank of India (RBI) has taken out UCO Bank from the Prompt Corrective Action (PCA) framework and lifted the restrictions.
The decision, however, is subject to certain conditions and continuous monitoring.
In a statement on Wednesday, the RBI said that performance of UCO Bank was reviewed by the Board for Financial Supervision and it was noted that as per its published results for the year ended March 31, 2021, the bank is not in the breach of the PCA parameters.
The bank has provided a written commitment that it would comply with the norms of Minimum Regulatory Capital, Net NPA and leverage ratio on an ongoing basis and has apprised the RBI of the structural and systemic improvements that it has put in place which would help the bank in continuing to meet these commitments.
"Taking all the above into consideration, it has been decided that UCO Bank is taken out of the PCA restrictions subject to certain conditions and continuous monitoring," the statement said.
The Indian Overseas Bank and the Central Bank of India are the other two banks under the framework.
The Reserve Bank has specified certain regulatory trigger points, as a part of PCA framework, in terms of three parameters including capital to risk weighted assets ratio (CRAR), net non-performing assets (NPA), and return on assets (RoA), for initiation of certain structured and discretionary actions in respect of banks hitting such trigger points.
The PCA framework is applicable only to commercial banks.
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