The Reserve Bank of India (RBI) has announced the exit of Bank of Maharashtra (BoM) from the prompt correct action (PCA) framework. The bank, one of the oldest PSU bank’s in India was put under PCA framework in June 2017.
Over the past year the bank has been consistently working on its business strategy and has been successful to turn around four out of five parameters monitored in the PCA by the RBI.
Since June 2017, the bank has implemented various structural, systematic and strategic changes which has led to an improvement in the operational efficiency, asset quality and balance sheet. The bank’s turnaround strategy, effective cost management practices and focus on rationalisation of branches has given a boost to its growth.
Commenting on the announcement, AS Rajeev, managing director and CEO, BoM, said, “We would like to thank the government for capital infusion of Rs 4,489 crore and all our employees for their efforts for us to exit from the PCA framework and steer the bank towards growth. This is a testament to our collective efforts and focused approach to realign our business and deliver value to all stakeholders. As the bank steps out from the PCA framework we aim to continue our higher growth trajectory and enhance lending to key sectors such as retail, agriculture and MSME.”
AC Rout, executive director, commenting on the improvement in asset quality and key parameters in the third quarter 2018-19, said, “We have reduced our net NPAs by 50 per cent and post recapitalization our capital adequacy ratio has improved to 11.05 per cent. In terms of provision coverage we are comfortably placed at 81 per cent. We have taken measures to drive sustainable growth.”
Headquartered in Pune, BoM has a customer base of more than 25 million. The bank also has a presence in Goa. It is listed on the BSE and NSE.