New Delhi: In another development, the Reserve bank of India on Friday further extended restrictions of Punjab and Maharashtra Cooperative Bank (PMC Bank) till March 31 and said the bank needs more time to reconstruct itself. Issuing a statement, the RBI said that four proposals have been received for the Expression of Interest (EoI) sought by the fraud-hit multi-state urban cooperative bank from potential investors for investment or equity participation in the bank for its reconstruction.
The RBI said that the proposals will be examined by the bank with regard to their viability and feasibility taking into account the best interest of the depositors and to undertake this process, the bank would need some more time. However, the last date for submission of EoI by potential investors was 15 December.
In September last year, the RBI superseded PMC Bank board and about 70 per cent of its total loan book of Rs 8,383 crore as on March 31, 2019, had been taken by real estate firm HDIL. That time, the bank had Rs 11,600 crore in deposits.
In different turn of events, the police arrested Joy Thomas, former Managing Director of the PMC Bank, in October and further investigations have since made a few more arrests.
In the beginning, the RBI had allowed depositors to withdraw Rs 1,000 which was later raised to Rs 1 lakh per account to mitigate their difficulties.
However, during the last fiscal year 2019-20, the PMC Bank registered a net loss of Rs 6,835 crore and had a negative net worth of Rs 5,850.61 crore.
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