RBI PCA Framework

IOB, which is under the Reserve Bank of India's PCA framework, had last posted profit in June 2016

In May 2017, the central bank had initiated PCA against the lender due to high non-performing assets and negative return on assets

The Reserve Bank in May 2017 had placed the IDBI Bank in the PCA framework because of the deterioration in the financial health of the bank

With this 84% of the bank's depositors will be able to withdraw their entire money deposited with it

The bank's credit portfolio grew by 1.52 per cent to Rs 94,889 crore in March, 2020

Currently, Indian Overseas Bank (IOB), Central Bank of India, UCO Bank and United Bank of India are under this framework

The truth is - falling market share of state-run banks is not something many will want to comment on record

The headroom will not be available in FY21, unless public sector banks are adequately recapitalised

The PCA framework kicks in when banks breach any of the three key regulatory trigger points namely capital to risk weighted assets ratio, net non-performing assets (NPA) and return on assets (RoA).

Das explained placing a lender under PCA framework is normal with lot of precedents

The bank said PCA would not have any adverse impact on its daily operations

At present, 11 out of 21 PSBs, which constitute about 20% of the market share, are already under the PCA framework