Preliminary response appears ‘positive’ for PMC Bank resolution: RBI governor

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Preliminary response appears ‘positive’ for PMC Bank resolution: RBI governor

MUMBAI: Reserve Bank of India (RBI) governor Shaktikanta Das on Friday mentioned the response from potential buyers for the reconstruction of crisis-ridden Punjab and Maharashtra Co-operative (PMC) Bank appearsconstructiveto this point.
Final month, the fraud-hit multi-state urban cooperative bank sought expression of curiosity (EoI) from potential investors for funding or equity participation within the bank for its reconstruction. The deadline for issuing Information Memorandum (IM) was November 20 and for looking for pre-bid clarifications was November 30.

“The response appears constructive at this level of time. The bank and its administration are absolutely engaged with the investors who had bought the data memorandum,” Das advised reporters after saying the financial policy.
The final date for submission of EoI by potential investors is December 15, he mentioned, includingallow us to see what’s the response and after that, we will take a view on this”.
In September 2019, the RBI had outmoded the board of PMC Bank and positioned it beneath numerous regulatory restrictions after detection of sure monetary irregularities, hiding, and misreporting of loans given to actual property developer HDIL.

The central bank appointed A K Dixit as the brand new administrator of the bank in September this yr.
Whereas saying the financial coverage on Friday, Das mentioned, “with the preservation of economic stability and depositors’ curiosity being uppermost in our agenda, we may swiftly resolve the scenario at two scheduled industrial banks”.

Two private lenders — Yes Bank and Lakshmi Vilas Bank have been rescued in 2020.
When requested concerning the causes for the delay to find a decision for PMC Bank, the governor mentioned PMC Bank‘s scenario was utterly completely different from the 2 banks that the RBI has resolved this yr.


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