January 24, 2021

RBI wants IDBI Bank to come out of PCA framework before stake sale

RBI wants IDBI Bank to come out of PCA framework before stake sale

By Administrator_India

Capital Sands

The government and Life Insurance Corporation (LIC) of India should allow IDBI Bank to come out of the prompt corrective action (PCA) framework before they go ahead with the stake sale in the lender, the Reserve Bank of India (RBI) has suggested.

The banking regulator’s view is that the government’s plan to exit IDBI Bank would send a wrong signal, portraying the lender as “weak” and the one which is in “more trouble”, said a key source aware of the development. “This is contrary to the current position,” he said. An evaluation of the PCA …