Mumbai, March 10
The RBI on Wednesday removed IDBI Bank from its enhanced regulatory supervision or Prompt Corrective Action (PCA) framework after a gap of nearly four years on improved financial performance.
It was noted that as per published results for the quarter ending December 31, 2020, the bank is not in breach of the PCA parameters on regulatory capital, net NPA and leverage ratio, the RBI said.
The bank has also 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. IDBI Bank had reported a net profit of Rs 378 crore for December quarter of 2020-21. — PTI
Returns to profit in Dec quarter
- The central bank had placed IDBI Bank under PCA framework in May 2017 after it had breached the thresholds for capital adequacy, asset quality, return on assets and the leverage ratio
- The bank had reported a standalone net profit of Rs378 crore for December quarter of 2020-21 compared to standalone net loss of Rs5,763 crore in the year-ago quarter