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.