IDBI Bank Limited has been under Prompt Corrective Action Framework (PCAF) of RBI from May, 2017. Reserve Bank of India, vide its press release 2020-2021/1223 dated 10.03.2021, said that IDBI Bank will be taken out of PCA framework subject to certain condition and continuous monitoring.
RBI added that, the performance of IDBI Bank Limited was reviewed by the Board for Financial Supervision (BFS) in its meeting held on February 18, 2021. It was noted that as per published results for the quarter ending December 31, 2020 the bank is not in breach of the PCA parameters on regulatory capital, Net NPA and Leverage ratio.
RBI further added that, 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 IDBI Bank Limited be taken out of the PCA framework, subject to certain conditions and continuous monitoring.