PMC Bank Restrictions Extended By 3 Months

More than a year after the Reserve Bank of India (RBI) superseded Punjab and Maharashtra Cooperative (PMC) Bank's board and imposed restrictions on it, depositors will have to continue awaiting a resolution as the central bank extends restrictions on the cooperative bank till 31 March 2021.

The crisis-ridden bank has received four Expression of Interests (EoIs) for investment/participation in its reconstruction. The last date for submission of EoIs was 15 December 2020.

"The bank has informed the Reserve Bank of India (RBI) that in response to EoI, four proposals have been received. These proposals will be examined by the bank with regard to their viability and feasibility taking into account the best interest of the depositors," the central bank said in a notification.

RBI further said that the restrictions have been extended as the bank would need some more time to ascertain the proposals received.

The RBI superseded PMC Bank board in September 2019, after fraudulent transactions were detected. Restrictions have been imposed on withdrawals for depositors of the bank since.

About 70% of its total loan book of Rs 8,383 crore as on 31 March 2019 had been taken by real estate firm HDIL. The bank had Rs 11,600 crore in deposits.

The police arrested Joy Thomas, former Managing Director of the PMC Bank, in October, while investigations continue.