Indian Overseas Bank shares jump over 11 pc as RBI removes it from PCA framework

Shares of Indian Overseas Bank on Thursday jumped over 11 percent after the Reserve Bank removed it from the Prompt Corrective Action Framework (PCAF).

The stock zoomed 20 percent to Rs 24.60 during the day on the BSE. It closed at Rs 22.80, a gain of 11.22 percent.

On the NSE, it gained 11.24 percent to close at Rs 22.75 after jumping 19.80 percent to Rs 24.50 during the day.

The Reserve Bank on Wednesday removed Indian Overseas Bank from the Prompt Corrective Action Framework (PCAF), following improvement in various parameters and a written commitment that the state-owned lender will comply with the minimum capital norms.

On a review of the performance of the IOB, the board for Financial Supervision based on the published financial results for 2020-21, found that the bank was not in breach of the PCA parameter, the RBI said in a statement.

The bank has provided a written commitment that it would comply with the norms of Minimum Regulatory Capital, Net NPA, and Leverage ratio on an ongoing basis, it added.

The lender has also 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.

''Taking all the above into consideration, it has been decided that Indian Overseas Bank is taken out of the PCA restrictions subject to certain conditions and continuous monitoring,'' the central bank added.

IOB was placed under PCA in 2015.