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Punjab and Maharashtra Co-operative Bank

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Punjab and Maharashtra Co-operative Bank
Company typeCo-operative Bank
IndustryBanking
Financial services
Founded1984
HeadquartersMumbai, India
Number of locations
137 branch banks (2019)
Area served
Websitepmcbank.com

Punjab & Maharashtra Co-operative Bank Limited (PMC), is a multi-state co-operative bank that began operations in 1983. It has 137 branches spread over half a dozen states of India and nearly 100 branches are in Maharashtra. It is regulated by the Reserve Bank of India and registered under the Cooperative Societies Act.[1]

It also has branches in Karnataka, Goa, Delhi, Madhya Pradesh and Gujarat. It is one of the profitable co-operative banks in India and had earned a total revenue of ₹1,297 crore (US$155 million) and profits of ₹99.69 crore (US$12 million) in the financial year 2019.[1]

On 23 September 2019, the RBI imposed operational restrictions on PMC Bank for six months. Due to this, the bank account holders are not allowed to withdraw more than ₹1,000 from their accounts during this period of restrictions.[2][3] On 26 September the restrictions have been eased and a total of Rs 10000 could be withdrawn by customers.[4] Joy Thomas, the MD of the bank, was suspended. He admitted the exposure of the bank to the troubled realty company HDIL and also stated that the company had been violating the RBI rules for 5-6 years now. Of the overall loan book of 8300 crores, PMC bank loans to HDIL stood at Rs.6226 crore, about 73% of total loans of the bank.[5]

To solve this, HC appoints the three-member committee to oversee the sale of assets of Housing Development Infrastructure (HDIL) to pay the depositors of Punjab and Maharashtra Co-operative Bank (PMC Bank). HDIL, its promoters Rakesh and Sarang Wadhawan, and a few former officials are accused of committing a fraud on PMC Bank. Public interest litigation filed in the high court, seeking the setting up of a committee to speed up the auction of HDIL's assets to pay depositors, has claimed that the realty firm owed Rs. 4,635 crore to the bank. The court said if the proceeds from the sale were insufficient to pay the dues, the committee would identify and dispose of the properties of other companies owned or promoted by the Wadhawans which were mortgaged with the PMC Bank, but with paripassu charge of other financial institutions.[6]

See also

References

  1. ^ a b Adhikari, Anand (24 September 2019). "What you must know about Punjab and Maharashtra Co-operative Bank". Business Today.
  2. ^ "RBI puts PMC Bank under watch, customers can't withdraw more than ₹1,000 for 6 months". India TV News. 24 September 2019.
  3. ^ "10 things to know about RBI's restrictions on PMC bank". New Indian Express. 24 September 2019.
  4. ^ Shrivastava, Rahul (27 September 2019). "RBI clarifies Rs 10,000 withdrawal limit for PMC Bank account holders not final". India Today. Retrieved 27 September 2019.
  5. ^ "Over two-thirds of PMC's loan exposure is in HDIL group". The Economic Times. Retrieved 30 September 2019.
  6. ^ https://economictimes.indiatimes.com/news/company/corporate-trends/pmc-bank-scam-hc-sets-up-panel-for-sale-of-hdil-assets/articleshow/73269363.cms
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