Indian Overseas Bank and Central Bank of India are currently under the framework of PCA which put forth many regulations on them. The DFS Secretary confirms that there are 3 PSU banks which approximately to be out of PCA for the framework by March. For the recent financial year, the government had allotted ₹20,000 crores Forrestal intake into the PSBs for meeting the regulatory provisions. The ministry of finance anticipates continuing the three public sector banks (PSBs) to be out of the RBI’s prompt corrective action (PCA) bracket in these couple of months as their financial health has enhanced.
Indian Overseas Bank, UCO Bank, and Central Bank of India are presently under this framework which puts forth many regulations on them, encompassing lending, compensation of the management, and directors’ fees. Financial Services Secretary Debasish Panda says, thanks, they are also now invariably for the last two quarters… in profit and they are fulfilling largely all the circumstances of the Reserve Bank of India (RBI). In any case, he said that they are lending, they’re handling all that business but there are some restrictions so that they will be out of that. Also, we hope that before the close of this financial year, these banks should be out of PCA.
He also made sure that the additional capital for these banks if the controller contends as the government has to ease any of the amount remaining of ₹20,000 crores recapture the process of capitalization for PSBs. Among the 12 PSBs, the bank of Punjab & Sind was given ₹5,500 crores. Parliament had approved in September the capital infusion of ₹20,000 crores in PSBs as a part of the first batch of Supplementary Demands for the allowances for 2020-21. With ₹5,500 crores going to the bank of Punjab & Sind, the government is now left with ₹14,500 crores.