Other banks to be out of PCA framework soon, says FM

A day after three PSU banks were removed from Prompt Corrective Action (PCA) framework of the RBI, Finance Minister Piyush Goyal on Friday expressed hope that other remaining 8 lenders will be out of the list soon.

Various steps taken by the government has helped the banks significantly and as a result three banks -- Bank of India (BoI), Bank of Maharashtra (BoM) and Oriental Bank of Commerce (OBC) -- are out of the PCA framework, he said while presenting the Interim Budget for 2019-20.

The RBI Thursday lifted lending curbs on three out of 11 weak public sector banks (PSBs).

Eight public sector banks -- Allahabad Bank, United Bank of India, Corporation Bank, IDBI Bank, UCO Bank, Central Bank of India, Indian Overseas Bank and Dena Bank -- still remain under PCA framework, which imposes lending restrictions and prevents them from expanding, among other curbs.

The way improvement are taking place in the banking sector, he said, remaining banks would be out of the PCA framework.