The Reserve Bank of India (RBI), the central bank of the country, has withdrawn certain restrictions placed on the operations of IDBI Bank.
The bank was taken out of RBI’s Prompt Corrective Action Framework (PCAF), following a review conducted by the Board for Financial Supervision (BFS) in its meeting held this week.
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However, the decision is subject to certain conditions and continuous monitoring.
In a statement, RBI said: “It was noted that as per published results for the quarter ending December 31, 2020 the bank is not in breach of the PCA parameters on regulatory capital, Net NPA and Leverage ratio.
“The bank has provided a written commitment that it would comply with the norms of minimum regulatory capital, Net NPA and Leverage ratio on an ongoing basis and has apprised the RBI of the structural and systemic improvements that it has put in place which would help the bank in continuing to meet these commitments.”
Notably, IDBI Bank was placed under PCAF in May 2017 restricting its expansion, investments and lending.
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By GlobalDataIn 2019, Indian state-owned insurer LIC acquired 51% stake in IDBI Bank.
The deal was then said to be mutually beneficial, offering IDBI access to more than one hundred thousand staff and 1.1 million agents of LIC, and providing LIC staff and agents with access to value-added banking services.
In January, IDBI Bank launched Video KYC Account Opening (VAO) facility.
