24
September 2021 - 3:01 pm IST

Money

UCO Bank shares zoom nearly 11 pc as co out of PCA watchlist

UCO Bank shares zoom nearly 11 pc as co out of PCA watchlist

Published:09 September 2021

Shares of UCO Bank on Thursday zoomed nearly 11 per cent after the Reserve Bank removed the company from its Prompt Corrective Action Framework (PCAF) following improvement in various parameters.

New Delhi | Shares of UCO Bank on Thursday zoomed nearly 11 per cent after the Reserve Bank removed the company from its Prompt Corrective Action Framework (PCAF) following improvement in various parameters.
The stock closed with a gain of 10.69 per cent at Rs 14.18 on BSE. During the day, it jumped 15.92 per cent to Rs 14.85.
At NSE, it climbed 10.54 per cent to close at Rs 14.15.
In volume terms, 72.67 lakh shares were traded at BSE and over 5 crore shares at NSE.
On a review of the performance of the UCO Bank, the Board for Financial Supervision on the basis of 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 on Wednesday.
The bank, it said, 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.
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 the financial commitments.
"Taking all the above into consideration, it has been decided that UCO Bank is taken out of the PCA restrictions subject to certain conditions and continuous monitoring," the RBI said.
The Kolkata-headquartered lender was under PCA since May 2017.
PCA is triggered when banks breach certain regulatory requirements such as return on asset, minimum capital and quantum of the non-performing asset.
The restrictions disable banks in several ways to lend freely and force them to operate under a restrictive environment that turns out to be a hurdle to growth.


Links

Sign up for Newsletter



Tags

Download Apps

Google Play App Store
  • |
  • |
  • |
  •  

© Copyright Metro vaartha 2018 All rights reserved. designed by : Tedsys

top