[ad_1]
IDBI Bank was placed under PCA framework in May 2017.
Share of state-run lender IDBI Bank rose as much as 17 per cent to hit an intraday high of Rs 44.80 on the BSE after the bank informed exchanges that it has exited the Reserve Bank of India’s prompt corrective action (PCA) framework.(Track IDBI Bank stock price here)
“The performance of IDBI Bank Limited, currently under the Prompt Corrective Action Framework (PCAF) of RBI, was reviewed by the Board for Financial Supervision (BFS) in its meeting held on February 18, 2021. 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,” Reserve Bank of India said in a press release.
IDBI Bank was placed under PCA framework in May 2017 after it had breached the thresholds for capital adequacy, asset quality, return on assets and the leverage ratio.
IDBI Bank gave a written commitment to the central bank 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.
Life Insurance Corporation-owned IDBI Bank had reported a standalone net profit of Rs 378 crore in December quarter on the back of healthy growth in interest income compared with a loss of Rs 5,763 crore in the year-ago quarter.
Net interest income (NII) grew 18 per cent to Rs 1,810 crore as against Rs 1,532 crore in the same quarter of the previous fiscal. Its net interest margin (NIM) improved by 60 basis points to 2.87 per cent as compared to 2.27 per cent in the year-ago period.
As of 9:57 am, IDBI Bank shares traded 13 per cent higher at Rs 43.05, outperforming the Sensex which was up 0.75 per cent.
[ad_2]
Source link
