- Reserve Bank of India (RBI) has moved out the public sector lender Indian Overseas Bank (IOB) from Prompt Corrective Action (PCA) framework after its financial and credit profile improved.
- This decision provides lender more freedom to lend, especially to corporations and grow the network.
- IOB was placed under PCA in October 2015 because of high Net-Performing Assets (NPAs) and negative Return on Assets (RoA).
- It was stopped from increasing risk-weighted assets.
- The net NPAs of IOB have declined to 3.58 per cent, as of March 2021 from 5.68 per cent in March 2015.
- In financial year 2021, IOB posted a net profit of Rs 831 crore against the net loss of Rs 454.33 crore in financial year 2015.
- In Financial year 2021, ROA was 0.27 per cent while in 2015, it was negative at -0.16 per cent. Its closed 0.74 per cent higher on BSE at Rs 20.5 per share.
Tags:
Economics
