Bank of India, Two Other Banks Taken Off RBI's Weak-Bank Watch List
Bank of India (BOI), as well as two other banks, took off RBI's weak-bank watch list. As per RBI – “In case of Oriental Bank of Commerce, the net NPA has come down to under than 6 % as the administration has mixed adequate capital.”
The Reserve Bank of India (RBI) on 31 Jan Thursday removed three state- Possessed Banks from its weak bank watch list, a move that will lift loaning limitations on them.
As per RBI said in a statement - "It has been chosen that Bank of India (BoI) as well as Bank of Maharashtra (BoM) which meet the regulatory norms including Capital Conservation Buffer (CCB). As well as have Net NPAs (non-performing assets) of less than 6% as per third quarter results are taken out of the Prompt Corrective Action (PCA) framework subject to Specific conditions and continuous nonstop observing,”
If there should arise an occurrence of Oriental Bank of Commerce, the net NPA has come down to under 6 % as the legislature has infused sufficient capital, it said
Commenting on the RBI's decision, Financial Services Secretary Rajiv Kumar said: "Government's sustained 4R's strategy for banking transformation delivers again. 3 better-performing PSBs (BoM, BoI & OBC) exit PCA. Banks need to be more responsible, adopt high underwriting & risk management standards to avoid recurrence."
Thus, it has been chosen to expel the confinements put on Oriental Bank of Commerce (OBC) under the PCA system, subject to specific conditions and closely observing, the apex bank added.
Commenting on the RBI's decision, Financial Services Secretary Rajiv Kumar stated: "Government's supported 4R's methodology for banking transformation delivers again. Three better-performing PSBs (BoM, BoI, and OBC) exit PCA.
Banks should be progressively capable, adopt high underwriting & risk management standards to avoid recurrence."