Prompt Corrective Action Framework – IDBI Bank Limited

Case Brief

The RBI's Board for Financial Supervision reviewed IDBI Bank Limited, which was under the Prompt Corrective Action Framework. The review found that, as per the quarter ended December 31, 2020 results, the bank was not breaching PCA parameters relating to regulatory capital, Net NPA and leverage ratio. The bank also gave a written commitment to continue meeting the required norms and reported structural and systemic improvements. RBI accordingly decided to remove the bank from PCA, subject to certain conditions and ongoing monitoring.