InvestorQ : Why did IOB hit the upper circuit in trading on 30-Sep?
Mary Joseph made post

Why did IOB hit the upper circuit in trading on 30-Sep?

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Arusha Ray answered.
2 months ago
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Indian Overseas Bank was locked in 20% upper circuit briefly during trading on Thursday but ended the day around 13% higher. This was after the RBI announced the removal of IOB from its PCA or the Prompt Corrective Action framework. IOB had been referred to the PCA framework way back in October 2015. The reason given by the RBI for the removal of IOB from PCA was improvement in the bank's financial and credit profile.

However, the exit from the PCA will be subject to continuous monitoring by the RBI and an undertaking by IOB to the RBI that it would continue to maintain and adhere to the framework with respect to profitability and non-performing assets in the future too. Going out of the PCA means IOB can now expand its branches, its asset book, pay dividends to investors and reward its staff like the other banks.

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