PMC Bank Scam: Rakesh Wadhawan gifted Wadahawan House in Bandra to family trust just before fraud
PMC Bank Scam: Rakesh Wadhawan gifted Wadahawan House in Bandra to family trust just before fraud
ANI

Troubled lender Punjab and Maharashtra Cooperative Bank has received four proposals in response to the expression of interest floated by the bank, the Reserve Bank of India. In November, the bank invited expression of interest from entities for acquiring the bank. The last date for submission of EoI was December 15, 2020.

“The PMC Bank had invited Expression of Interest (EoI) from eligible investors for investment/ equity participation for its reconstruction. The bank has informed Reserve Bank that in response to EoI, four proposals have been received,” RBI said in a statement.

“These proposals will be examined by the bank with regard to their viability and feasibility taking into account the best interest of the depositors. To undertake this process, the bank would need some more time,” the banking regulator said.

Potential investors will have the option to convert PMC Bank into a small finance bank, provided they meet the RBI’s licencing conditions. The lender will need RBI’s approval for such a conversion.

In September last year, RBI imposed restrictions on this multi-state cooperative lender following financial irregularities and deposit withdrawals were capped initially at Rs 1000 which was raised to Rs 1 lakh in a phased manner.

The directions were last extended vide Directive dated June 19, 2020 up to December 22, 2020.

On Friday, RBI said the restrictions were extended till 31 March.

“Keeping in view the best interest of all stakeholders, it is considered necessary to extend the aforesaid Directions. Accordingly, it is hereby notified for the information of the public that the validity of the aforesaid Directive dated September 23, 2019, as modified from time to time, has been extended for a further period from December 23, 2020 to March 31, 2021, subject to review,” RBI said.

The bank’s total deposit base was Rs 10,727 crore as on 31 March while advances were at Rs 4,473 crore. The bank reported a net loss of Rs 6,835 crore for 2019-20. The bank’s net worth has turned negative, and it will need around Rs 5,850 crore to bring it back to zero. The bank will need another Rs 1,000 crore capital to maintain a minimum capital adequacy ratio of 9 per cent.

PMC Bank, a multi-state cooperative lender, has a presence in Maharashtra, Delhi, Karnataka, Goa, Gujarat, Andhra Pradesh and Madhya Pradesh, with 137 branches.

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