Some of the public sector banks are likely to come out of the Prompt Corrective Action (PCA) framework in next few months on the back of improvement in various parameters, a top finance ministry official said.Eleven out of the total 21 public sector banks are under the central bank's PCA framework, which imposes lending restrictions and prevents them from expanding, among other curbs. "Some of the banks out of 11 have shown better performance...If some banks are performing well and they are adequately capitalised as per the Basel norms. RBI is seized of the matter," Financial Services Secretary Rajiv Kumar told PTI.There is a strong case on the basis of performance of some banks to be removed from the PCA list if not all, he said.Recently, the government announced infusion of Rs 28,615 crore into seven public sector banks (PSBs) through recapitalisation bonds. "They need to improve all parameters of NPAs, capital savings, non-core assets monetisation etc. All that agenda have been given to them," he said.The recapitalisation will enhance the lending capacity of public sector banks and help them come out of the RBI's watch list.

Source: Economic Times January 20, 2019 12:11 UTC