InvestorQ : What does it mean for Central Bank of India, now that it is out of the PCA framework?
Archita Jajjoo made post

What does it mean for Central Bank of India, now that it is out of the PCA framework?

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Niti Shenoi answered.
2 months ago
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While it is yet to be confirmed by the RBI, it is anticipated that Central Bank of India would exit RBI’s prompt corrective action (PCA) framework pretty soon. This will eliminate restrictions on its business growth and other rewards to stakeholders. For the Q1FY23 quarter, CBI reported 14.2% growth in profits at Rs234.78 crore.

Gross NPAs fell to 14.9%, but pretty steep in absolute terms. CBI is the only bank left in PCA now. The last 2 banks to exit PCA were IOB and UCO Bank. CBI has been under PCA since June 2017 due to high level of gross NPAs and low ROA. PCA restricts dividends, management pay and expansion plans.

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