After the lender demonstrated improvement in a number of financial ratios, including minimum regulatory capital and net non-performing assets, the Reserve Bank of India removed the Central Bank of India from its Prompt Corrective Action Framework (PCAF) (NNPAs).

When a bank transgresses certain regulatory thresholds regarding capital to risk weighted assets ratio (CRAR), net NPAs, and return on assets, the Prompt Corrective Action norm, a supervisory instrument, is enforced (RoA).

In June 2017, the RBI imposed PCA requirements on the bank because of its high net NPA and poor asset return (RoA). The RBI decided to lift the limitations on the bank after evaluating the performance of the Central Bank of India.

The bank has given a written assurance that it will consistently adhere to the standards of minimum regulatory capital, net NPA, and leverage ratio.

Source: Indian Express

https://indianexpress.com/article/business/banking-and-finance/rbi-removes-central-bank-of-india-from-prompt-corrective-action-framework-8163142/