What is pca in hdfc bank?

PCA, or Prompt Corrective Action, is a framework implemented by the Reserve Bank of India (RBI) to maintain the financial health of banks, including HDFC Bank. It is triggered when a bank's financial metrics, such as capital adequacy, asset quality, and profitability, fall below certain thresholds. Under PCA, the bank may face restrictions on lending and expansion, and it must take corrective measures to restore its financial stability. This ensures that the bank operates within a safe and sound framework, protecting depositors and the financial system.