Allahabad, Corporation, Dhanlaxmi Bank out of PCA

The Reserve Bank of India (RBI) on Tuesday lifted lending curbs on two more public sector banks (PSBs), namely Allahabad Bank and Corporation Bank, besides also freeing private lender Dhanlaxmi Bank from the Prompt Corrective Action (PCA) Framework. Last month, Bank of India, Bank of Maharashtra and Oriental Bank of Commerce were taken out of the PCA Framework.

Allahabad, Corporation, Dhanlaxmi Bank out of PCA

In a statement, the central bank said that the Board for Financial Supervision (BFS) reviewed the performance of banks under PCA and noted that the government has infused fresh capital on February 21 into various banks, including some of the banks currently under the PCA framework.

Of these banks, Allahabad Bank and Corporation Bank had received Rs 6,896 crore and Rs 9,086 crore, respectively.

Capital infusion has shored up their capital funds and also increased their loan loss provision to ensure that the PCA parameters were complied with the regulator said.

With the removal of Allahabad Bank and Corporation Bank, six public sector undertaking (PSU) banks — IDBI Bank, UCO Bank, Central Bank of India, Indian Overseas Bank, Dena Bank and United Bank of India are still under the PCA framework.

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