Three final offers received for PMC Bank resolution, says RBI

NEW DELHI: Three investors have submitted their final offers for resolution of crisis-ridden Punjab and Maharashtra Co-operative (PMC) Bank and their evaluation is underway, Reserve Bank Governor Shaktikanta Das said on Friday. Last month, the bank's administrator A K Dixit had said that 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In September 2019, RBI had superseded the board of PMC Bank and placed it under various regulatory restrictions after detection of certain financial irregularities, hiding and misreporting of loans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 per cent 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.

Dixit, in his letter to customers and shareholders dated January 18, 2021, wrote that initially, four investors had shown their interest but three went ahead with the further process.