Three state-owned banks have been removed from the Reserve Bank of India's (RBI) radar of weak-bank watch list. Removal from the PCA framework will mean the lifting of lending restrictions imposed on them.
In a statement the Central Bank said, "It has been decided that Bank of India (BoI) and Bank of Maharashtra (BoM) which meet the regulatory norms including Capital Conservation Buffer (CCB) and have Net NPAs (non-performing assets) of less than 6 per cent as per third quarter results, are taken out of the PCA (prompt corrective action) framework subject to certain conditions and continuous monitoring."
In the case of Oriental Bank of Commerce, the net NPA has come down to less than 6 percent as the government has infused sufficient capital, it said. Hence, it has been decided to remove the restrictions placed on Oriental Bank of Commerce (OBC) under the PCA framework, subject to certain conditions and close monitoring, RBI added.