Initial response from investors for PMC Bank positive : Das

Mumbai (IANS) The Reserve Bank of India (RBI) expects resolution plans for Mumbai-based Punjab and Maharashtra Co-operative (PMC) Bank soon as initial response from investors have been positive.

At the post MPC meeting conference, RBI Governor Shaktikanta Das said that response to expression of interest (EoI) invited from investors looked positive at this juncture and this has given confidence that a banks resolution would go through as planned.

Last year RBI superseded the board of (PMC) Bank after discovering major financial irregularities and fraud. Ever since then, the RBI-appointed administrator is yet to succeed in finding a resolution plan for the bank.

The administrator had approached major banks with a merger request, but so far nothing had materialised.

RBI's efforts to find a merger plan involving a PSB has also not frictified.

The last date for submission of EoIs from prospective investors for PMC emended on November 30. Based on the interest, December 15 is the last date for submission of financial bid.

Das said that bank management are in touch with investors and future course of action would depend on the developments on December 15.

He agreed that case for resolving PMC was different from
other two banks that RBI had resolved.

The RBI superseded PMC Bank board in September 2019. Of its total loan book of Rs 8,383 crore, as on March 31, 2019, about 70 per cent had been taken by the real estate firm HDIL.

During investigations, it was found that the bank had been allegedly running fraudulent transactions for several years to facilitate lending to HDIL through fictitious accounts and violating single-party lending rules.

The RBI has imposed restrictions on deposit withdrawals and superseded its board after the fraud was detected.

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