New Delhi: The Shamravo Vitthal Cooperative Bank (SVC Bank) has clarified on Sunday that there is no plan of merger with the PMC Bank. The clarification came in the wake of were rumours that the PMC Bank will be merged with the SVC Bank as Maharashtra CM Devendra Fadnavis said that the Maharashtra government was willing to explore the possibility of a PMC Bank merger.
“We have come across a rumour on social media platforms about a merger between us and PMC Bank. We request everyone not to pay heed to such false and baseless statements. We are committed to protect the interests of our depositors, shareholders and stakeholders and will take strong action against people spreading such rumours,” a notice issued by the bank said.
The PMC Bank is a multi-state cooperative bank with operations in Maharashtra, New Delhi, Karnataka, Goa, Gujarat, Andhra Pradesh and Madhya Pradesh. An alleged scam of Rs 4,355 crore in the PMC bank came to light a few weeks ago. The Supreme Court initially capped withdrawals at Rs 1,000 and then hiked it to Rs 40,000.
According to reports, the PMC bank created over 21,000 fictitious accounts to hide bad loans extended to Housing Development and Infrastructure Limited, which is almost-bankrupt. The bank also under-reported its NPAs to the RBI.
Established in 1906, SVC bank operated in 10 states: Maharashtra, Karnataka, Tamil Nadu, Telangana, Delhi, Rajasthan, Haryana, Goa, Gujarat and Madhya Pradesh.