Good news for Central Bank of India. The Bank has been taken out of the prompt corrective action (PCA) restrictions, which means it will no longer be subject to strict lending curbs.
RBI had imposed curbs on the bank in June 2017 due to very high net NPAs and consistent negative return on assets.
RBI said in a statement that the Bank’s performance was reviewed by the Board for Financial Supervision and according to the assessed figures of the bank for the year ended March 31, 2022, the lender is not in breach of the PCA parameters.
The PCA framework was introduced in December 2002 as a structured early intervention mechanism which were later revised in April 2017.
On the back of an over 5-times rise in volumes, the stock price opened 15.5% higher at Rs.23.50 and is now trading at Rs.22 levels. Its 52-week high is at Rs.25.15.