Question: which entity is owner of IDBI bank?
a) Reliance
b) Government of India
c) LIC
d) None of the above
Ans : c)
Context
- The Reserve Bank of India (RBI) has removed IDBI Bank from the Prompt Corrective Action (PCA) framework on 10th march 2021.
Facts
- Central bank had put the IDBI Bank under the PCA framework in May 2017 because of the bank’s high non-performing assets(NPA). Bank had breached the thresholds for capital adequacy, leverage ratio, asset quality and return on assets.
- The net NPAs were more than 13% in the month of March 2017.
- By the end of December 31, 2020, it was noted that the bank was reporting a net profit of ₹378 crores in that quarter and hence was not in breach of PCA parameters on regulatory capital, leverage ratio and net NPA.
Prompt Corrective Action (PCA) Framework
- It is a framework under which the banks with weak financial metrics are kept under regulation by the central bank. The framework was introduced in 2002 by the RBI.
By kameshwar shukla
Reference: https://www.freepressjournal.in/business/rbi-takes-lic-owned-idbi-bank-out-of-pca-framework