Indian Overseas Bank (IOB) share price locked in 20 percent upper circuit in the early trade on September 30 as Reserve Bank of India (RBI) lifted the curbs and took the bank out of the Prompt Corrective Action (PCA) framework.
The board for financial supervision reviewed the performance of Indian Overseas Bank and noted that as per its published results for year ended March 31, 2021, the bank is not in the breach of PCA parameters, RBI said.
Further, the bank has provided a written commitment that it would comply with the norms of minimum regulatory capital norms, net NPA and leverage ratio on an ongoing basis, RBI said.
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Taking all the above into consideration, it has been decided that Indian Overseas Bank is taken out of the PCA restrictions subject to certain conditions and continuous monitoring, RBI said.
RBI had brought Indian Overseas Bank under the PCA framework in October 2015. The bank had been requesting to the central bank to take it out of the PCA framework.
Under the PCA norms, the central bank imposes business restrictions on banks having weak financial metrics and the restrictions are decided on a case to case basis.
At 09:16 hrs, Indian Overseas Bank was quoting at Rs 24.60, up Rs 4.10, or 20.00 percent on the BSE.
There were pending buy orders of 4,906,199 shares, with no sellers available.
The share touched a 52-week high Rs 29 and a 52-week low of Rs 8.80 on 30 June, 2021 and 16 October, 2020, respectively.
Currently, it is trading 15.17 percent below its 52-week high and 179.55 percent above its 52-week low.
The share price gained over 160 percent in the last one-year.
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