RBI governor said bank's management is in touch with investors to evaluate the interest. Deadline for investors to submit binding offer is December 15
There seems finally some good news for the crisis-ridden Punjab and Maharashtra Co-operative Bank (PMC). The Reserve Bank of India governor Shaktikanta Das, in a recent statement has said that initial response from potential investors 'looks positive'.
The RBI, even after one year is yet to get success in finding a rescuer for Punjab and Maharashtra Co-operative Bank.
Shaktikanta Das said that the bank's management is in touch with investors to evaluate the interest. The deadline for investors to submit binding offers for PMC Bank is December 15.
At the post-monetary policy press conference, Das indicated that the bank will evaluate the applications and after December 15 some clarity could emerge on the matter.
RBI could rescue two crisis-ridden - Yes Bank and Lakshmi Vilas Bank in a very short span of time after the Boards were superseded. However that did not apply to PMC bank. RBI had superseded PMC Bank board in September 2019.
PMC bank fraud details
About 70 percent of its total loan book of Rs 8,383 crore as on March 31, 2019, had been taken by real estate firm HDIL. The bank had Rs 11,600 crore in deposits.
The police arrested Joy Thomas, former managing director of the PMC Bank, in October. The investigators have since made a few more arrests.
During investigations, it was found that the bank had been allegedly running fraudulent transactions for several years to facilitate lending to HDIL.
This was done through fictitious accounts and violating single-party lending rules.
The RBI imposed restrictions on deposit withdrawals and superseded its board after the fraud was detected.
PMC bank net worth
According to the bank, it had total deposits of Rs 10,727.12 crore, total advances of Rs 4,472.78 crore and gross NPA of Rs 3,518.89 crore as on March 31, 2020.
The share capital of the bank is Rs 292.94 crore. The bank registered a net loss of Rs 6,835 crore during 2019-20 and has a negative net worth of Rs 5,850.61 crore.
PMC bank status
PMC Bank has been in discussions with a clutch of potential acquirers over the last year including a few Mumbai-based banks. But, talks haven’t progressed so far.
In an advertisement on its website on November 3, the Maharashtra-based multi-state co-operative bank invited interest from potential bidders for the reconstruction of the bank.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Good news for PMC! Crisis-ridden bank may soon find rescuer")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}