The Reserve Bank of India (RBI) has removed three state-owned banks from its weak-bank watch list and these banks are Bank of Maharashtra (BoM), Bank of India (BoI) and Oriental Bank of Commerce (OBC). This move will lift lending restrictions on them.
It has been decided that Bank of India and Bank of Maharashtra which meet the regulatory norms including Capital Conservation Buffer (CCB) and have Net NPAs (non-performing assets) of less than 6 percent as per third quarter results, are taken out of the PCA (prompt corrective action) framework subject to certain conditions and continuous monitoring.
In case of Oriental Bank of Commerce, the net NPA has come down to less than 6 percent as the government has infused sufficient capital. Hence, it has been decided to remove the restrictions placed on Oriental Bank of Commerce under PCA framework, subject to certain conditions and close monitoring.
Bank of Maharashtra offers several products and services in personal banking such as deposits, savings, personal loans, educational loans, demat services, credit cards, etc. The Bank also offers services to agricultural and SME sectors.
