Reserve Bank of India (RBI)
Reserve Bank of India (RBI)

The Reserve Bank of India on Tuesday said factors like huge losses and erosion of deposits at Punjab and Maharashtra Co-operative (PMC) Bank continue to cause hindrance in its revival, and appointed a new administrator.

RBI appointed A K Dixit, ex-general manager of Union Bank of India, as the new administrator of the bank with effect from September 23, 2020.

It said the present administrator J B Bhoria is stepping down today due to health reasons.

"While the administrator of PMC bank and the RBI have been exploring various options for resolution of the bank, several factors such as huge losses incurred by the bank resulting in its entire net worth getting wiped out, steep erosion in deposits, etc continue to pose serious challenges in finding a workable plan for revival of the bank," RBI said in a release.

The bank has also been making efforts for recovery of non-performing assets, although the progress has been constrained because of the COVID-19 pandemic and legal complexities, the central bank said.

Nevertheless, in the interest of the depositors, the PMC Bank and the RBI are continuing to engage with the stakeholders to explore the possibility of finding a viable and workable solution for the resolution of the bank, the release said.

RBI, in September 2019, had superseded the board of the bank and placed regulatory restrictions on it after finding out certain financial irregularities.

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