UCO Bank was placed under the so-called PCA framework in 2017 due to its deteriorating financial health, at a time when Indian lenders battled record levels of soured assets, prompting the RBI to tighten thresholds.
The bank was no longer in breach of these PCA parameters as per its March-quarter results, the central bank said in a statement.
The RBI added that UCO Bank had committed to complying with its rules on an ongoing basis.
The central bank in March removed another state-run lender, IDBI Bank Ltd, from its PCA list.
Under RBI rules, prompt corrective action is triggered if a bank’s net non-performing loans ratio crosses 6% or if the capital requirements to be maintained are breached.