RBI takes Indian Overseas Bank out of prompt corrective action framework

·        The Reserve Bank of India has taken public sector lender Indian Overseas Bank (IOB) out of the Prompt Corrective Action (PCA) framework (PCA) to improve its financial and credit profile.

·        IOB was placed under PCA in October 2015 due to high Net-Performing Assets (NPA) and negative Return on Assets (ROA).

·        The decision will provide greater freedom to the Chennai-based lender to extend credit specifically to the corporations and to develop the network subject to the prescribed norms.

Important facts

About RBI

v Headquarters: Mumbai

v Founder: British Raj

v Founded: 1 April 1935, Kolkata

v Governor: Shaktikanta Das

v First Governor of RBI: Sir Osborne Smith

v The Prime Minister who has served as the Governor of RBI: Dr. Manmohan Singh