PCA bank stocks slump up to 7% after RBI board meet
The Reserve Bank of India's PCA framework restricts lending and expansion of lenders.
By ETMarkets.com | Updated:
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NEW DELHI: Shares of 11 state-run banks that are under the prompt corrective action (PCA) framework of the RBI were trading in the red in the morning trade on Tuesday.
Shares of Bank of Maharashtra (down 6.90 per cent), Oriental Bank of Commerce (down 5.54 per cent), Corporation Bank (down 5.53 per cent) and Bank of India (down 5.31 per cent) plunged on the BSE.
Shares of Allahabad Bank (down 3.22 per cent), UCO Bank (down 3.02 per cent), Indian Overseas Bank (down 2.95 per cent) and Dena Bank (down 2.92 per cent) fell up to 3 per cent.
United Bank of India (down 1.84 per cent), Central Bank of India (down 1.75 per cent) and IDBI Bank (down 1.24 per cent) declined over 1 per cent.
The Reserve Bank of India's PCA framework restricts lending and expansion of lenders. Out of the 21 state-owned banks, 11 are under the PCA framework at present.
The RBI board on Monday discussed the Basel regulatory capital framework, a restructuring scheme for stressed MSMEs, bank health under Prompt Corrective Action (PCA) framework and the Economic Capital Framework (ECF).
As per PTI, with regard to banks under Prompt Corrective Action (PCA), the board decided that the matter will be examined by the Board for Financial Supervision (BFS) of the RBI.
Shares of Bank of Maharashtra (down 6.90 per cent), Oriental Bank of Commerce (down 5.54 per cent), Corporation Bank (down 5.53 per cent) and Bank of India (down 5.31 per cent) plunged on the BSE.
Shares of Allahabad Bank (down 3.22 per cent), UCO Bank (down 3.02 per cent), Indian Overseas Bank (down 2.95 per cent) and Dena Bank (down 2.92 per cent) fell up to 3 per cent.
United Bank of India (down 1.84 per cent), Central Bank of India (down 1.75 per cent) and IDBI Bank (down 1.24 per cent) declined over 1 per cent.
The Reserve Bank of India's PCA framework restricts lending and expansion of lenders. Out of the 21 state-owned banks, 11 are under the PCA framework at present.
The RBI board on Monday discussed the Basel regulatory capital framework, a restructuring scheme for stressed MSMEs, bank health under Prompt Corrective Action (PCA) framework and the Economic Capital Framework (ECF).
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As per PTI, with regard to banks under Prompt Corrective Action (PCA), the board decided that the matter will be examined by the Board for Financial Supervision (BFS) of the RBI.
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