RBI-monitored takeover process complete Crisis-hit PMC Bank branches to operate as USFBL branches
New Delhi Jan 25 PTI Crisis-hit Punjab and Maharashtra Cooperative PMC Banks takeover by the Unity Small Finance Bank USFBL came into effect on Tuesday with the government notifying the scheme of amalgamation PMC Bank branches will operate as USFBL branches from Tuesday onwards the Reserve Bank of India RBI said in a statement on Tuesday The takeover comes into force little over two years after the RBI superseded the board of the PMC Bank after financial irregularities came to light On Tuesday the government sanctioned and notified the scheme of amalgamation envisaging takeover of the assets and liabilities of PMC Bank including deposits by the USFBL The amalgamation will come into force with effect from the date of the notification of the scheme ie January 25 2022 All the branches of the PMC Bank will function as branches of Unity Small Finance Bank Ltd with effect from this date the RBI said USFBL is making necessary arrangements to implement the provisions of the scheme it added A draft scheme of amalgamation prepared by the RBI was placed in the public domain on November 22 2021 whereby suggestions and objections if any were sought from members depositors and other creditors of the two lenders The deadline for submission of suggestions and objections ended on December 10 2021 USFB promoted by Centrum Financial Services along with Resilient Innovation Pvt Ltd as a joint investor was granted a banking licence in October 2021 USFB started functioning on November 1 In September 2019 the RBI superseded the then board of PMC Bank and placed it under regulatory restrictions including cap on withdrawals by its customers after detection of certain financial irregularities hiding and misreporting of loans given to real estate developer HDIL The restrictions were extended several time since then PMC Banks exposure to HDIL was over Rs 6500 crore or 73 per cent of its total loan book size of Rs 8880 crore as of September 19 2019 PTI NKD RAM
New Delhi Jan 25 PTI Crisis-hit Punjab and Maharashtra Cooperative PMC Banks takeover by the Unity Small Finance Bank USFBL came into effect on Tuesday with the government notifying the scheme of amalgamation PMC Bank branches will operate as USFBL branches from Tuesday onwards the Reserve Bank of India RBI said in a statement on Tuesday The takeover comes into force little over two years after the RBI superseded the board of the PMC Bank after financial irregularities came to light On Tuesday the government sanctioned and notified the scheme of amalgamation envisaging takeover of the assets and liabilities of PMC Bank including deposits by the USFBL The amalgamation will come into force with effect from the date of the notification of the scheme ie January 25 2022 All the branches of the PMC Bank will function as branches of Unity Small Finance Bank Ltd with effect from this date the RBI said USFBL is making necessary arrangements to implement the provisions of the scheme it added A draft scheme of amalgamation prepared by the RBI was placed in the public domain on November 22 2021 whereby suggestions and objections if any were sought from members depositors and other creditors of the two lenders The deadline for submission of suggestions and objections ended on December 10 2021 USFB promoted by Centrum Financial Services along with Resilient Innovation Pvt Ltd as a joint investor was granted a banking licence in October 2021 USFB started functioning on November 1 In September 2019 the RBI superseded the then board of PMC Bank and placed it under regulatory restrictions including cap on withdrawals by its customers after detection of certain financial irregularities hiding and misreporting of loans given to real estate developer HDIL The restrictions were extended several time since then PMC Banks exposure to HDIL was over Rs 6500 crore or 73 per cent of its total loan book size of Rs 8880 crore as of September 19 2019 PTI NKD RAM
