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RBI removed IOB from PCAF

Published on October 02, 2021
Current Context: The Reserve Bank of India (RBI) has removed Indian Overseas Bank (IOB) from the Prompt Corrective Action Framework (PCAF).
RBI removed IOB from PCAF
  • The reason behind taking out of PCAF was that the bank has performed in compliance with PCA parameters and features.
  • The performance overview of the IOB was made and hence the decision was taken by the central ban.
  • The IOB also committed to follow and comply with the rules of Minimum Regulatory Capital, NET NPA, and leverage ratio on an ongoing basis.
  • The IOB was put under PCAF in Oct 2015 because of high NPAs (Non-Performing Assets) and negative RoA (Return on Assets).
  • The central bank had not allowed the IOB to increase risk-weighted assets.
  • Static Part: 
    • Recently UCO Bank was also taken out of PCAF
    • HQ of RBI: Mumbai
    • Governor of RBI: Shaktikanta Das

Question: 

Q.1 RBI has removed ____ from Prompt Corrective Action Framework (PCAF), which was applied in Oct 2015?
a. Union Bank of India
b. Indian Overseas Bank
c. Punjab National Bank
d. Bank of Baroda

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