Bengaluru: The Bank of India’s reserve (RBI) said on Wednesday it had taken UCO banks from a fast list of corrective actions (PCA) after finding that the country managed lenders did not violate the rules on regulatory capital, bad loans and leverage ratios.
Bank UCO is placed under what is called the PCA framework in 2017 because of deteriorating financial health, when Indian lenders fought against the asset asset level, pushing the RBI to tighten the threshold.
The bank no longer violates this PCA parameter in accordance with the results of the March quarter, the central bank said in a statement.
RBI added that UCO banks have committed to adhering to its rules on an ongoing basis.
The central bank in March removes other country lenders, IDBI Bank Ltd, from the list of PCA.
Under RBI regulations, corrective actions that are quickly triggered if the bank’s net non-performance loan ratio crosses 6% or if the capital requirements are maintained violated.