Tackling NPA mess: Even as the government enforces various measures to tackle India\u2019s burgeoning NPA menace, Department of Financial Services Secretary Rajiv Kumar said that the the PSU banks are expected to come out of the Prompt Corrective Action (PCA) framework by the end of this year. Currently, 11 out of a total of 21 state-owned banks are under the RBI\u2019s Prompt Corrective Action (PCA) framework, which kicks in when banks breach any of the three key regulatory trigger points i.e. capital to risk weighted assets ratio, net non-performing assets (NPA) and Return on Assets (RoA). Among the major restrictions under the PCAs that kick-in depending on the risk thresholds include restriction from paying dividend, checks on expansion of the number of branches,and \u00a0staff recruitment and increasing the size of their loan book. Notably, Dena Bank and Allahabad Bank are currently facing restrictions on granting fresh loans. \u201cWe are committed to maintain their regulatory capital. I\u2019m sure the banks will come out of PCA this fiscal. NPAs are by and large recognized, provisioning by and large made, the recoveries are on its course through NCLT and outside NCLT (National Company Law Tribunal). The creditor-debtor relationship is under tremendous change. The resolve of government is extremely clear that every stakeholder has to be responsible. Those who are not prudently behaving will have to face the consequences,\u201d \u00a0DFS (Department of Financial Services Secretary) Rajiv Kumar said at a Canara Bank branch opening event.\u00a0Earlier this month, the Union Cabinet approved a proposal to allow Life Insurance Corporation (LIC) raise its stake in IDBI Bank to 51%. The government had argued that the deal will help IDBI Bank come out of the PCA framework. In April-June 2018, the operating profit of banks has increased by 11.5%and the net losses fell 73.5% over the same quarter last fiscal year, Rajiv kumar said, adding that the provision Coverage Ratio of banks have now reached 63.8% from around 56% at the starting of last fiscal year. Notably, the PSU banks overall net losses have narrowed to Rs 16,617 crore in April-June 2018, from a record of Rs 62,682 crore in April-June 2017. Their operating profits increased to Rs 36,632 crore in April-June 18, from a Rs 34,329 crore in April-June quarter in the previous fiscal. \u201cSome of it (capital) has already been given, as recoveries is taking place, there is possibility that some banks will not need it. As of now, there no bank is breaching the regulatory norms,\u201d Rajiv Kumar noted.