Shares Jump: Indian Overseas Bank Out of RBI PCA Curbs

Indian Overseas Bank (IOB) has been taken out of the Prompt Corrective Action Framework (PCAF) by the Reserve Bank of India (RBI).

New Delhi: The decision was taken following improvement in various parameters and a written commitment that the state-owned lender will comply with the minimum capital norms.

Following the move by India’s central bank, shares of IOB witnessed a jump of 20 per cent at BSE. At the NSE, it gained 19.80 per cent.

On a review of the performance of the IOB, the Board for Financial Supervision on the basis of the published financial results for 2020-21, found that the bank was not in breach of the PCA parameter, the RBI said in a statement.

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, it added.

Tags

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Back to top button