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

The RBI and PMC Bank are presently engaging with prospective investors to secure the best possible terms for the depositors, and the process is likely to take some more time, the central bank said, as it extended the restrictions on the fraud-hit urban cooperative lender by three months to June 30.

In September 2019, the RBI had superseded the board of PMC and placed it under regulatory restrictions, including cap on withdrawals by customers, after detection of certain financial irregularities and misreporting of loans given to real estate developer HDIL.

The restrictions have been extended several time since then.

PMC Bank had received binding offers from certain investors for its reconstruction, in response to the Expression of Interest (EOI) dated November 3, 2020 floated by the bank.

RBI and PMC Bank are presently engaging with prospective investors in order to secure best possible terms for the depositors and other stakeholders while ensuring long term viability of the reconstructed entity, the central bank said in a statement.

Given the financial condition of PMC Bank, the process "is complex and is likely to take some more time", it said, while extending the various regulator restrictions on the lender till June 30.

Last time, the restrictions were extended in December 2020 till March 31, 2021.

"It may be clarified that the process of reconstruction will be commenced as soon as the aforesaid objectives are achieved to the best possible extent," the RBI added.

PMC's exposure to HDIL was over Rs 6,500 crore or 73 per cent of its total loan book size of Rs 8,880 crore as of September 19, 2019.

Initially, the RBI had allowed depositors to withdraw Rs 1,000 which was later raised to Rs 1 lakh per account to mitigate their difficulties.

In June 2020, the RBI had extended the regulatory restrictions on the cooperative bank by another six months till December 22, 2020.

As of March 31, 2020, PMC Bank's total deposits stood at Rs 10,727.12 crore and total advances at Rs 4,472.78 crore. Gross NPA of the bank stood at Rs 3,518.89 crore at end-March 2020.

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