Finance Ministry asks six public sector banks to improve on PCA parameters

NEW DELHI: The Finance Ministry has asked the six remaining public sector banks, currently under Prompt Corrective Action (PCA), to improve on seven parameters to get the government's support for coming out of the PCA framework.

Out of a total of 11 banks put under PCA last year, three have already moved out while another two will merge with a stronger entity.

These banks are asked to improve upon net interest margins, CASA, Risk Weighted Assets, NPA recognition, divergence (disparity in loan recognisation), operating profit and non-core asset selling to be able to get our support for being out of the PCA," official sources said.
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