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videos | IST

PCA status of Allahabad Bank will improve by June 2019, says CEO Mallikarjuna Rao

Allahabad bank, being under RBI's prompt corrective action (PCA) framework, is expecting its status to improve by June 2019, said  SS Mallikarjuna Rao, MD and CEO of the bank.
“We being a prompt corrective action (PCA) bank, it’s a good boon for us,” said Rao, reacting to the RBI board meet outcome.
The board on Monday decided to constitute an expert committee to examine the Economic Capital Framework (ECF), the membership and terms of reference of which will be jointly determined by the government of India and the central bank.  With regard to banks under Prompt Corrective Action (PCA), it was decided that the matter will be examined by the Board for Financial Supervision (BFS) of RBI, the bank said.
The board, while deciding to retain the Capital to Risky Asset Ratio (CRAR) at 9 percent, agreed to extend the transition period for implementing the last tranche of 0.625 percent under the Capital Conservation Buffer (CCB), by up to March 31, 2020, the bank added.
Rao said that it’s a good news from RBI that for all the banks the capital conservation buffer deferment gives an advantage.
According to him, return on assets to break even by June 2019.