Corporation Bank, Allahabad Bank, Dhanlaxmi Bank shares jump up to 10 percent post RBI move

While shares of Corporation Bank zoomed up to 10.10 per cent, Allahabad Bank climbed 8.20 percent and private sector Dhanlaxmi Bank jumped 10 per cent.

Published: 27th February 2019 01:26 PM  |   Last Updated: 27th February 2019 01:26 PM   |  A+A-

sensex, nifty, stock exchange, shares

Image used for representational purpose only. (File Photo | Reuters)


NEW DELHI: Shares of Corporation Bank, Allahabad Bank and Dhanlaxmi Bank rose sharply by up to 10.10 percent on Wednesday after the RBI lifted lending curbs on these lenders by removing them from its weak-bank watchlist.

State-owned Corporation Bank zoomed 10.10 per cent, Allahabad Bank climbed 8.20 percent while private sector Dhanlaxmi Bank jumped 10 per cent. The RBI on Tuesday removed the three banks from its Prompt Corrective Action (PCA) framework.

In a statement, the RBI said the Board for Financial Supervision (BFS) reviewed the performance of banks under PCA and noted that the government has infused fresh capital on February 21 into various banks including some of the banks currently under the PCA framework.

Capital infusion, the RBI said, has shored up their capital funds and also increased their loan loss provision to ensure that the PCA parameters were complied with. "Accordingly, based on the principles adopted by the BFS in its earlier meeting dated January 31, 2019, it was decided in the meeting held on February 26, 2019 that Allahabad Bank and Corporation Bank be taken out of the PCA Framework subject to certain conditions and continuous monitoring," RBI said.

The RBI further it has also been decided to take Dhanlaxmi Bank out of the PCA Framework, subject to certain conditions and continuous monitoring, as the bank is found to be not breaching any of the Risk Thresholds of the PCA Framework.

Stay up to date on all the latest Business news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp