Reserve Bank of India on Friday extended restrictions on crisis-ridden Punjab and Maharashtra Co-operative (PMC) Bank by three months till 31 March, 2021.
EOI opportunity
The Bank has received expressions of interest (EoIs) from four Investors.
Last month, the Bank had invited EoI from potential investors for investment or equity participation in the bank for its reconstruction.
As per the details of the proposal, the eligible investors could be financial institutions, including banks and non-banking financial companies (NBFCs).
Flashback
After the incident came into light, the RBI had allowed depositors to withdraw Rs 1,000, which was later raised to Rs 1 lakh per account to mitigate their difficulties.
In June this year, the RBI had extended the regulatory restrictions on the cooperative bank by another six months till December 22, 2020.
RBI Statement
It was necessary to extended restrictions on PMC Bank by three more months until March 31, 2021, keeping in view the best interest of all stakeholders.
The directions were last extended on June 19, 2020 up to December 22, 2020.
Company’s Financial
As of March 31, 2020, the PMC Bank’s total deposits stood at ₹10,727.12 crore and total advances at ₹4,472.78 crore.
Gross NPA of the bank stood at ₹3,518.89 crore as of end-March.
During 2019-20, it registered a net loss of ₹6,835 crore and has a negative net worth of ₹5,850.61 crore.
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