Central Bank of India has been removed from the Prompt Corrective Action (PCA) framework by Reserve Bank of India (RBI), subject to certain conditions and continuous monitoring. As per the assessed figures of the bank for the year ended March 31, 2022, the bank is not in breach of the PCA parameters. Further, the bank has provided a written commitment that it would comply with the norms of minimum regulatory capital, net non-performing asset and leverage ratio on an ongoing basis.
The bank was the only bank under the RBI's PCA framework. It was put under the PCA framework in June 2017 due to its high net non-performing assets (NPAs) and low Return on Assets. PCA is triggered when banks breach certain regulatory requirements such as return on asset, minimum capital and quantum of the non-performing assets including on lending, management compensation and directors' fees.
Central Bank of India is a commercial bank. The bank’s segments include Treasury Operations, Corporate/Wholesale Banking, Retail Banking and other Banking business.
