Central Bank Of India Shares Surge As It Exits RBI PCA Framework

Shares of Central Bank of India Ltd. gained the most in 10 months after the lender exited the Reserve Bank's prompt corrective action framework.

The lender, placed under the framework in 2017, has provided a written commitment that it would comply with the norms of minimum regulatory capital, net NPA and leverage ratio on an ongoing basis, according to its exchange filing.

It has also informed the banking regulator of the structural and systemic improvements that it has put in place which would help the bank in continuing to meet these commitments.

Central Bank of India was the last lender under the PCA framework.

Shares of the company gained as much as 15.5%, the most since November last year. The scrip closed 6.6% higher.

The trading volume was 32 times the 30-day average. The Relative Strength Index of the stock was 71, suggesting it may be overbought.