IDBI Bank jumps after exit from PCA

IDBI Bank surged 13.86% to Rs 43.55 after the Reserve Bank of India took the bank out of the Prompt Corrective Action (PCA) Framework subject to certain conditions and continuous monitoring.

In a statement, the central bank said that the performance of IDBI Bank, currently under the Prompt Corrective Action Framework (PCAF) of RBI, was reviewed by the Board for Financial Supervision (BFS) in its meeting held on 18 February 2021.

It was noted that as per published results for the quarter ending 31 December 2020 the bank is not in breach of the PCA parameters on regulatory capital, Net NPA and leverage ratio.

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 which would help the bank in continuing to meet these commitments.

Taking all the above into consideration, it has been decided that IDBI Bank be taken out of the PCA framework, subject to certain conditions and continuous monitoring.

IDBI Bank offers a wide range of products from savings and current bank account to loans for retail and MSME customers or agri-loans to farmers.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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