Indian Overseas Bank stock price: The shares of Indian Overseas Bank returned tremendously on Thursday, 30 September. The bank’s shares touched their upper circuit of 20%. In the intraday, the shares of Indian Overseas Bank had reached Rs 24.60 with an upper circuit of 20%. However, later they softened and at 10.17 in the morning they were trading at Rs 23.10, up 12.96%.
The reason for the rise in the shares of Indian Overseas Bank has been that on the evening of 29 September, RBI announced the removal of restrictions imposed on the bank.
RBI has taken Indian Overseas Bank out of PCA (Prompt Corrective Action) framework. RBI imposes many restrictions on the banks included in the list of PCA framework. Such banks face many restrictions related to business including disbursing new loans, opening branches, giving dividends. After coming out of the list of PCA framework, these restrictions have now been removed from Indian Overseas Bank.
Recently, the RBI had also taken the public sector UCO Bank out of the restrictions of the PCA framework. According to a statement issued by the RBI, the Board of Financial Supervision has reviewed the functioning of Indian Overseas Bank. As per the result released on 31st March 2021, the bank has not violated the PCA parameter.
RBI further said, “Therefore, Indian Overseas Bank is now taken out of the PCA framework. Indian Overseas Bank has stated in writing that it will keep all regulatory related rules in mind,” the statement said.