RBI appoints new administrator of PMC Bank; no revival plan for bank as yet

Topics RBI | PMC Bank | cooperative banks

Efforts are also being made to recover money from the bad accounts that have turned sour
The Reserve Bank of India (RBI) on Tuesday said despite exploring various options for the resolution of Punjab and Maharashtra Co-operative (PMC) Bank, it is yet to come up with a plan for its revival. It has also appointed AK Das, ex-general manager at Union Bank of India, as the new administrator of the bank, with effect from September 23.

The present administrator, JB Bhoria, stepped down from his role as the administrator of the bank due to health reasons.

“While the administrator of PMC bank and the RBI have been exploring various options for resolution of the bank, several factors such as huge losses incurred by the bank resulting in its entire net worth getting wiped out, steep erosion in deposits, etc. continue to pose serious challenges in finding a workable plan for revival of the bank”, the RBI said.

Efforts are also being made to recover money from the bad accounts that have turned sour, but the coronavirus (Covid-19) pandemic has slowed the progress and the legal complexities are also adding to the problems in recovery.

“Nevertheless, in the interest of the depositors, the PMC bank and the RBI are continuing to engage with the stakeholders to explore the possibility of finding a viable and workable solution for the resolution of the bank”, the RBI added.

Last year on September 23, the banking regulator superseded the board of PMC bank, after discovering fraud and financial irregularities in the bank, to protect the interest of the depositors and to secure proper management of the bank.

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