RBI removes UCO Bank from Prompt Corrective Action framework

The Kolkata-based slope came retired of the PCA restrictions aft much than 4 years. The RBI had initiated punctual corrective enactment successful May 2017 successful presumption of precocious non-performing assets and antagonistic instrumentality connected assets.

The Reserve Bank of India connected Wednesday removed UCO Bank from its Prompt Corrective Action Framework (PCAF) taxable to definite conditions and continuous monitoring.

The Kolkata-based slope came retired of the PCA restrictions aft much than 4 years. The RBI had initiated punctual corrective enactment successful May 2017 successful presumption of precocious non-performing assets and antagonistic instrumentality connected assets.

In a merchandise connected Wednesday, the RBI said, “The show of UCO Bank, presently nether the Prompt Corrective Action Framework (PCAF) of the

RBI, was reviewed by the Board for Financial Supervision. It was noted that arsenic per its published results for the twelvemonth ended March 31, 2021, the slope is not successful the breach of the PCA parameters.”

The RBI said the lender has provided a written committedness that it would comply with the norms of minimum regulatory capital, nett NPA and leverage ratio connected an ongoing basis, and has apprised the regulator of the structural and systemic improvements that it has enactment successful place. These steps volition assistance the slope proceed to conscionable its commitments.

“Taking each the supra into consideration, it has been decided that UCO Bank is taken retired of the PCA restrictions taxable to definite conditions and continuous monitoring,” the cardinal slope said successful the release.

UCO Bank had urged the RBI to see taking it retired of the PCA model aft posting full-year nett for the past fiscal. The slope had reported a nett net successful 2020-21 aft continuous losses successful the erstwhile 5 fiscal years. Net nett during the twelvemonth ended March 2021 was Rs 167.03 crore.

The plus prime improved importantly during the past fiscal. Gross NPA fell to Rs 11,351.97 crore from Rs 19,281.95 crore arsenic connected March 31,

2020. Its gross NPA ratio dropped to 9.59% astatine the extremity of FY21 from 16.77% astatine the extremity of FY20, portion nett NPA ratio reduced to 3.94% from 5.45%.