The Reserve Bank of India (RBI) on Wednesday removed IDBI Bank from its enhanced regulatory supervision, or the Prompt Corrective Action (PCA) framework, after almost four years, on improved financial performance.
The RBI had placed IDBI Bank under the framework in May 2017, after it had breached the thresholds for capital adequacy, asset quality (net NPAs were over 13% in March 2017), return on assets and leverage ratio.
It was noted as per published results for the quarter ended December 31, the bank was not in breach of the PCA parameters on regulatory capital, net NPA and leverage ratio, the RBI said.
“Taking all the above into consideration, it has been decided that IDBI Bank Ltd. be taken out of the PCA framework,” the RBI said.
The LIC-owned IDBI Bank had reported a standalone net profit of ₹378 crore for the December quarter.
The lender had reported a net loss of ₹5,763 crore a year earlier.
You have reached your limit for free articles this month.
Subscription Benefits Include
Today's Paper
Find mobile-friendly version of articles from the day's newspaper in one easy-to-read list.
Unlimited Access
Enjoy reading as many articles as you wish without any limitations.
Personalised recommendations
A select list of articles that match your interests and tastes.
Faster pages
Move smoothly between articles as our pages load instantly.
Dashboard
A one-stop-shop for seeing the latest updates, and managing your preferences.
Briefing
We brief you on the latest and most important developments, three times a day.
Support Quality Journalism.
*Our Digital Subscription plans do not currently include the e-paper, crossword and print.
A letter from the Editor
Dear subscriber,
Thank you!
Your support for our journalism is invaluable. It’s a support for truth and fairness in journalism. It has helped us keep apace with events and happenings.
The Hindu has always stood for journalism that is in the public interest. At this difficult time, it becomes even more important that we have access to information that has a bearing on our health and well-being, our lives, and livelihoods. As a subscriber, you are not only a beneficiary of our work but also its enabler.
We also reiterate here the promise that our team of reporters, copy editors, fact-checkers, designers, and photographers will deliver quality journalism that stays away from vested interest and political propaganda.
Suresh Nambath
Please Email the Editor