Finance minister assured government funding support to public sector banks and hoped that the 6 lenders which remain under the RBI’s prompt corrective action framework will soon come out of it. He said that the Insolvency and Bankruptcy Code (IBC) has been a success story and the government has maintained arm’s length distance from the processes being followed.
“The government has lived up to its word of continuing to fund you in terms of capital. I am glad that several banks have recently come out of the PCA norms and I’m sure the others who remain within will also try and improve their measures with the government commitment of support to them so that we can see much healthier banking in years to come,” Jaitley said. Of the total 21 state-owned banks, 11 were put under the PCA framework by the RBI last year. Five banks — Allahabad Bank, Corporation Bank, Bank of India, Bank of Maharashtra and Oriental Bank of Commerce – have been removed from the framework this month. The 6 PSBs which remain in the PCA list are United Bank of India, IDBI Bank, UCO Bank, Central Bank of India, Indian Overseas Bank and Dena Bank.