Central Bank of India may exit RBI PCA framework soon

NEW DELHI: Central Bank of India, the only public sector lender under the RBI’s prompt corrective action (PCA) framework, may see an exit from restrictions soon following an improvement in its financial health.

The bank has already made a representation to the RBI based on the improvement in financial parameters on a sustained basis for the past five quarters, sources said.

According to sources, the RBI is looking at the bank’s request and may take a view on this soon based on quantitative and qualitative parameters.

In the latest quarter, the bank’s gross NPA fell to 14.9 pc of the gross advances as compared to 15.92 per cent in the year-ago period.

Net NPAs too declined to 3.93 per cent from 5.09 per cent in the first quarter of the previous year.