Allahabad Bank, BoI, BoM, Corp Bank to exit PCA framework

NEW DELHI: Corporation Bank, Bank of Maharashtra (BoM), Bank of India (BoI) and Allahabad Bank may exit the prompt corrective action (PCA) framework of the RBI soon, ET Now reported on Wednesday.

The Reserve Bank of India has put several banks under PCA for not maintaining a desirable level of capital which restricts their business activity.

Besides capital, PCA is also triggered if bad loans are higher than a minimum threshold and return on assets is lower than the threshold.


There are 11 public sector banks, including Bank of India, Allahabad Bank, UCO Bank, United Bank of India, IDBI Bank, Dena Bank and Indian Overseas Bank, in the PCA framework.

The PCA framework is applicable only to commercial banks and not extended to cooperative banks and non-banking financial companies (NBFCs).

Shares of Bank of Maharashtra (up 8.85 per cent), Bank of India (up 6.57 per cent), Corporation Bank (up 4.66 per cent) and Allahabad Bank (up 4.21 per cent) closed the day with decent gains.

BSE Sensex settled 0.38 per cent up at 36,484.