2019
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Question
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4
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5
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Detailed explanation-1: -Of the three state-owned lenders under the RBI’s PCA framework, Indian Overseas Bank and UCO Bank were removed from the watchlist in September 2021. Central Bank of India was put under the PCA framework in June 2017 due to its high net non-performing assets (NPAs) and low Return on Assets.
Detailed explanation-2: -RBI had placed 11 state-run banks – Allahabad Bank, United Bank, Corporation Bank, IDBI Bank, Uco Bank, Bank of India, Central Bank of India, Indian Overseas Bank, Oriental Bank of Commerce, Dena Bank and Bank of Maharashtra – under PCA framework after they breached the risk thresholds.
Detailed explanation-3: -Taking all the above into consideration, it has been decided that Central Bank of India is taken out of the PCA restrictions subject to certain conditions and continuous monitoring.
Detailed explanation-4: -Central Bank was the last of the public sector lenders to come out of PCA.
Detailed explanation-5: -RBI Removes Central Bank of India from PCA Framework.