“The bank has informed Reserve Bank that in response to EoI, four proposals have been received. These proposals will be examined by the bank with regard to their viability and feasibility taking into account the best interest of the depositors. To undertake this process, the bank would need some more time,” the RBI said.
The RBI further said keeping in view the best interest of all stakeholders, it is considered necessary to extend the aforesaid directions. “Accordingly, it is hereby notified for the information of the public that the validity of the aforesaid Directive dated September 23, 2019, as modified from time to time, has been extended for a further period from December 23, 2020 to March 31, 2021, subject to review,” it said.
On September 23, 2019, the RBI had superseded the board of PMC and placed it under various regulatory restrictions after detection of certain financial irregularities, hiding and misreporting of loans given to real estate developer HDIL.
Its exposure to HDIL was over Rs 6,500 crore or 73 per cent of its total loan book size of Rs 8,880 crore as of September 19, 2019.
Initially, the RBI had allowed depositors to withdraw Rs 1,000 which was later raised to Rs 1 lakh per account to mitigate their difficulties. In June this year, the RBI had extended the regulatory restrictions on the cooperative bank by another six months till December 22, 2020.
As of March 31, 2020, PMC Bank‘s total deposits stood at Rs 10,727.12 crore and total advances at Rs 4,472.78 crore. Gross NPA of the bank stood at Rs 3,518.89 crore as on end-March.
The share capital of the bank is Rs 292.94 crore. During 2019-20, it registered a net loss of Rs 6,835 crore and has a negative net worth of Rs 5,850.61 crore.