IDBI Bank shares zoom nearly 18 pc after removal from RBI’s PCA framework

The stock started on a positive note and jumped 17.12 per cent to Rs 44.80 on BSE.
IDBI Bank shares zoom nearly 18 pc after removal from RBI’s PCA framework
Representative Image

New Delhi

Shares of IDBI Bank on Friday zoomed nearly 18 per cent in early trade after RBI removed the lender from its enhanced regulatory supervision or Prompt Corrective Action (PCA) framework after a gap of nearly four years.
The stock started on a positive note and jumped 17.12 per cent to Rs 44.80 on BSE.
On NSE, it rallied 17.64 per cent to Rs 45.
The Reserve Bank of India (RBI) had placed IDBI Bank under PCA framework in May 2017, after it had breached the thresholds for capital adequacy, asset quality (net NPAs was over 13 per cent in March 2017), return on assets and the leverage ratio.
The performance of IDBI Bank was reviewed by the Board for Financial Supervision (BFS) in its meeting held on February 18, 2021.
It was noted that as per published results for the quarter ending December 31, 2020, the bank is not in breach of the PCA parameters on regulatory capital, net NPA and leverage ratio, the RBI said on Wednesday.
The bank has also provided a written commitment that it would comply with the norms of minimum regulatory capital, net NPA and leverage ratio on an ongoing basis and has apprised the RBI of the structural and systemic improvements that it has put in place which would help the bank in continuing to meet these commitments.
"Taking all the above into consideration, it has been decided that IDBI Bank Limited be taken out of the PCA framework, subject to certain conditions and continuous monitoring," the RBI said.
Equity markets were closed on Thursday for Mahashivratri.

Related Stories

No stories found.