Bank of India hopes to soon come out of RBI's PCA framework
January 12, 2018
Bank of India (BoI) is quite hopeful of coming out of the RBI's Prompt Corrective Action (PCA) framework this fiscal, Dinabandhu Mohapatra, Managing Director & CEO has said.
This optimism stems from recent Rs. 2,257 crore capital support from Government under Indradhanush scheme and the fact that BoI has over the last twenty days (since being placed under PCA) recovered as much as Rs. 2,000 crore by invoking Standby Letter of Credit issued by other banks, Mohapatra told BusinessLine here.
It may be recalled that RBI had in the third week of December placed BoI under the PCA framework, following an onsite inspection under the Risk Based Supervision Model carried out for the year ended March 2017, and the report issued thereof.
Mohapatra said that BOI's financial performance including NPA recoveries has been better in the first two quarters this fiscal.
He highlighted that as much as 65 per cent of NPAs of the bank are already covered under provisions.
"RBI has brought us under PCA based on the situation as of March 2017. We see PCA as an enabler and not as a dampener. In last six months, we have changed the working of BoI in line with new age banking", Mohapatra said.