The Reserve Bank of India (RBI) has taken Indian Overseas Bank (IOB) out of the PCA restrictions, subject to certain conditions and continuous monitoring. The Chennai-headquartered public sector bank (PSB) was put under PCA in 2015.
Earlier this month, UCO Bank came out of the PCA regime. Now, among public sector banks, only Central Bank of India remains under the PCA.
An RBI statement said IOB’s performance was reviewed by the Board for Financial Supervision. The Board noted that going by its published results for the year ended March 31, 2021, the bank is not in the breach of the PCA parameters.
“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 to help the bank continue to meet these commitments,” the statement said.