Bengaluru: reserve Bank of India (RBI) said on Wednesday that it has UCO Bank It was dropped from its prompt corrective action (PCA) list after it was revealed that the state-run lender was not violating its regulations on regulatory capital, bad debt and leverage ratios.
UCO Bank was placed under the so-called PCA framework in 2017 due to its deteriorating financial health, at a time when Indian lenders were grappling with record levels of soured assets, prompting the RBI to tighten the threshold .
The central bank said in a statement that as of the March quarter results, the bank is no longer violating these PCA norms.
RBI said that UCO Bank is committed to comply with its regulations on an ongoing basis.
The central bank had in March removed another state-run lender IDBI Bank Ltd from its PCA list.
Under RBI rules, prompt corrective action is initiated if the bank’s net non-performing loan ratio exceeds 6% or if the capital requirements are maintained.
UCO Bank was placed under the so-called PCA framework in 2017 due to its deteriorating financial health, at a time when Indian lenders were grappling with record levels of soured assets, prompting the RBI to tighten the threshold .
The central bank said in a statement that as of the March quarter results, the bank is no longer violating these PCA norms.
RBI said that UCO Bank is committed to comply with its regulations on an ongoing basis.
The central bank had in March removed another state-run lender IDBI Bank Ltd from its PCA list.
Under RBI rules, prompt corrective action is initiated if the bank’s net non-performing loan ratio exceeds 6% or if the capital requirements are maintained.
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