Six state-run banks told to improve on PCA parameters

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.

"We have told these banks to improve upon net interest margins (NIMs), CASA (current account savings account), RWA (Risk Weighted Assets), NPA recognisation, 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.

Earlier, a finance ministry official had said all the six banks were expected to come out of PCA over the next two quarters or by June. 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.