The performance of IDBI Bank Limited, currently under the Prompt Corrective Action (PCA) Framework of the Reserve Bank of India (RBI), was reviewed by the Board for Financial Supervision (BFS) in its meeting held on 18 February 2021.
It was noted that as per published results for the quarter ending 31 December 2020 the bank is not in breach of the PCA parameters on regulatory capital, Net NPA and Leverage ratio.
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 and has apprised the RBI of the structural and systemic improvements that it has put in place which would help the bank in continuing to meet these commitments.
Taking all the above into consideration, it has been decided that IDBI Bank Limited be taken out of the PCA framework, subject to certain conditions and continuous monitoring.