PCA framework

Question 1

Who issues it ?

Answer 1

RBI

Question 2

What are the parameters it is based on ?

Answer 2

1) Capital to Risk weighted Assets ratio (CRAR)
2) Net NPA’s
3) Return on Assets (RoA’s)

Question 3

Applicability of PCA ?

Answer 3

Applies only to Commercial banks

Doesn’t apply to Cooperative Banks or NBFC’s or FMI’s