Central Bank of India soars on exiting RBI's PCA framework

Central Bank of India jumped 7.13% to Rs 21.80 after the Reserve Bank of India (RBI) decided to remove the public sector bank from prompt corrective action (PCA) framework.

RBI on Tuesday (20 September) said the Board for Financial Supervision reviewed the performance of the Central Bank of India. The regulator noted that as per the assessed figures of the bank for the year ended 31 March, it 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. It 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, RBI decided to remove Central Bank of India from its Prompt Corrective Action Framework (PCAF) restrictions, subject to certain conditions and continuous monitoring," RBI said.

Central Bank of India is a public sector bank. The bank has a pan India presence with network of 4,528 branches, 2,999 ATMs and 10,644 BC Points with total 18,171 touch points as on June'22.

The bank reported 14.2% increase in standalone net profit to Rs 235 crore on a 0.9% rise in total income to Rs 6,357 crore in Q1 FY23 over Q1 FY22.

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