PMC Bank gets 4 EoIs; RBI extends limits till March

The crisis ridden Punjab and Maharashtra Co-operative (PMC) Bank has received expressions of interest (EoIs) from four suitors, Reserve Bank of India (RBI) said on Friday. The proposals are being examined for viability, feasibility and also to check whether these are in the interest of depositors.

Meanwhile, the regulator has also extended the restrictions placed on PMC by three months till March 31, 2021, until the proposals are studied.

“Accordingly, it is hereby notified for the information of the public that the validity of the aforesaid directive dated September 23, 2019, as modified from time to time, has been extended for a further period from December 23, 2020 to March 31, 2021, subject to review,” RBI said.

On December 4, RBI governor Shaktikanta Das had said the response from potential investors for reconstruction of PMC Bank looked positive. The bank and its management were fully engaged with the investors who had purchased the information memorandum, Das observed.

Last month, the administrator of fraud-hit PMC Bank had invited EoI from potential investors for investment or equity participation in the bank for its reconstruction. The last date for submission of EoI by potential investors was December 15. As per the details of the proposal, the eligible investors could be financial institutions, including banks and non-banking financial companies (NBFCs). The proposal also allowed investment from individuals or group of individuals/companies, societies, trusts or any other such entities having adequate net worth.

In September, 2019, the RBI had superseded the board of PMC bank and placed it under regulatory restrictions after detection of certain financial irregularities. Initially, 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.