The consortium of Centrum and BharatPe had expressed an interest in taking over
According to reports, both Centrum and BharatPe will hold 50 per cent in the small
bank and the assets and liabilities of the multistate cooperative bank will be transferred to it.
“BharatPe is delighted at the opportunity to build a high-performing technology-led small finance bank serving the payment, investment, and credit needs of the under-served,” said Ashneer Grover, chief executive officer and co-founder, BharatPe.
PMC Bank was placed under curbs in September 2019. Its administrator had floated an expression of interest on November 3, 2020, inviting investors for revival/reconstruction. Initially, four investors had shown an interest and three of them participated in further process.
In 2019-20, PMC Bank’s deposits stood at Rs 10,727.12 crore with advances at Rs 4,472.78 crore. The bank posted a net loss of Rs 6,835 crore with net worth at a negative Rs 5,850.61 crore.
had placed the bank under restrictions in 2019 following revelations of alleged irregularities in certain loan accounts.
On March 26, the RBI
had extended the spell of curbs for three months beginning from April 1, 2021, to June 30, 2021. Given the financial condition of PMC Bank, the process is complex and is likely to take some more time. The process of reconstruction will start as soon as the objectives are achieved to the best possible extent, the RBI said.
Meanwhile, Centrum Capital is planning to raise equity capital through a rights issue or a private placement (including but not limited to a qualified institutional placement).
It will also look at raising up to Rs 1,000 crore through non-convertible debentures (NCDs). The board of Centrum Capital is meeting on June 22 to consider proposals for equity share and debentures issuance.
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