The Mumbai-based lender is the last to exit PCA frameworkWhich begins when banks breach three primary risk limits based on parameters such as net non-performing assets, minimum capital norms and return on assets.
“It was noted that as per the valuation data of the bank for the year ended March 31, 2022, the bank is not in violation of the PCA norms,” reserve Bank of India said Tuesday.
The decision to lift the trade ban from the bank was taken after a review by the Board of Financial Supervision. The Bank has given a written commitment that it will adhere to the norms of minimum regulatory capital, net NPA and leverage ratio on an ongoing basis. It has also apprised the regulator of the structural and systemic reforms undertaken to meet these commitments.
The Central Bank of India, which was placed under the PCA in June 2017, was one of the 12 lenders that were brought under supervisory intervention to restore their financial health over the past half-decade.
The bank’s net profit rose 14% to Rs 235 crore in the June quarter, while its net NPA ratio fell by 3.93%.