RBI removes PCA restrictions on UCO Bank

The Reserve Bank of India has lifted the curbs on the state-run UCO Bank after its financials improved and the bank committed to prudence. The bank now goes off the so-called Prompt Corrective Action, leaving just two banks under curbs. This leaves Indian Overseas Bank and Central Bank of India under PCA.
The regulator reviewed the performance of UCO bank and found that it’s earnings for the
for the year ended March 31, 2021, is not in the breach of the PCA parameters.

“It has been decided that UCO Bank is taken out of the PCA restrictions subject to certain conditions and continuous monitoring,” the RBI said in a statement.

The bank has also provided a written commitment 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.