RBI takes IDBI Bank out of PCA framework

The Reserve Bank of India has taken the IDBI Bank, out of the Prompt Corrective Action (PCA) framework, amid the improving finances of the bank, however it is subjected to certain conditions and continuous monitoring.
IDBI Bank was placed under PCA in May, 2017.
The PCA regime places curbs on lending and expenditure of the bank and it will be under the close watch of RBI for certain financial parameters such as capital ratios, asset quality and profitability
The performance of IDBI Bank Limited was reviewed by the Board for Financial Supervision (BFS) in its meeting held on February 18, 2021.
Based on the results for the quarter ending December 31, 2020 the bank was not in breach of the PCA parameters on regulatory capital, Net NPA and Leverage ratio, therefore it was decided to take lender out of PCA framework.