New Delhi : Finance Minister Piyush Goyal on Thursday promised all possible help to strengthen the 11 public sector banks placed under the ‘Prompt Corrective Action’ (PCA) framework by the RBI to check their deteriorating financial health.
Under the PCA, banks face restrictions on distributing dividends and remitting profits. The owner may be asked to infuse capital into the lender. The lenders are stopped from expanding their branch networks and need to maintain higher provisions. Management compensation and directors’ fees are also capped. “Over the next few days we will ensure that the central government gives every possible support to further strengthen the resolve of these banks to come out of PCA framework as quickly as is possible,” Goyal said.
The 11 banks under PCA are Dena Bank, Allahabad Bank, UBI, Corporation Bank, IDBI Bank, UCO Bank, BoI, Central Bank of India, IOB, Oriental Bank of Commerce and BoM.