RBI extends regulatory restrictions on PMC for three more months

The Reserve Bank of India (RBI) Saturday extended regulatory restrictions on the beleaguered Punjab and Maharashtra Cooperative (PMC) Bank for three more months till June 22, 2020.

“It is hereby notified for the information of the public that the validity of the directive dated September 23, 2019, as modified from time to time, has been extended for a further period of three months from March 23, 2020 to June 22, 2020, subject to review,” the RBI said in a release.

“Nevertheless, in the interest of the depositors and the stability of the cooperative banking sector, the RBI, in consultation with various stakeholders and authorities, is trying to work out a scheme for revival of the bank,” the RBI release added.

The central bank had last imposed regulatory regulations on PMC for six months on September 23, 2019, citing various irregularities, hiding and misreporting of loans given to real estate developer HDIL.

The bank had also capped the withdrawal limit for depositors at Rs 1,000, which was gradually increased to Rs 50,000. In a similar move, the RBI, earlier this month, put private sector lender Yes Bank under moratorium and capped withdrawal limit for depositors at Rs 50,000 per month. The moratorium was lifted two weeks later.

PMC Bank has 137 branches across seven states with 81 branches in Mumbai, Navi Mumbai, Thane and Palghar regions. The bank reported net profit of Rs 99.69 crore for the year ended March 2019 as against Rs 100.90 crore in March 2018. The 14-member board of the bank is headed by S Waryam Singh.