Three last bids acquired for Punjab and Maharashtra Co-operative Financial institution decision: Reserve Financial institution of India


Mumbai, February 5

Three investors have submitted their final offers for resolution of crisis-ridden Punjab and Maharashtra Co-operative (PMC) Bank and their evaluation is underway, RBI Governor Shaktikanta Das said on Friday. Last month, the bank’s administrator AK Dixit had said three investors were given time till February 1, 2021 for submissions of their final offer.

“I have been informed that three final offers have been received. I am given to understand that the PMC bank itself is evaluating the offers,” the Governor told reporters after announcing the monetary policy.

He said once the evaluation is done, the bank would approach RBI.

In September 2019, RBI had superseded the Board of PMC Bank and placed it under various regulatory restrictions after detection of certain financial irregularities, hiding and misreporting of loans given to real estate developer HDIL.

Its exposure to HDIL was over Rs 6,500 crore or 73% of its total loan book size of Rs 8,880 crore as of September 19, 2019. Initially, the restrictions, including withdrawal of deposits and fresh lending, were imposed for six months but RBI has been extending the curbs. On December 18, it announced a further extension till March 31, 2021. In November last year, the fraud-hit multi-state urban cooperative bank had invited expressions of interest (EoIs) from potential investors for investment or equity participation in the bank for its reconstruction.

EoIs were invited to identify a suitable equity investor/ group of investors willing to take over management control so as to revive the bank and commence regular day-to-day operations. — PTI



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