The RBI and PMC Bank are presently engaging with prospective investors to secure the best possible terms for the depositors, and the process is likely to take some more time, the central bank said, as it extended the restrictions on the fraud-hit urban cooperative lender by three months to June 30.
In September 2019, the RBI had superseded the board of PMC and placed it under regulatory restrictions, including cap on withdrawals by customers, after detection of certain financial irregularities and misreporting of loans given to real estate developer HDIL.
The restrictions have been extended several time since then. PMC Bank had received binding offers from certain investors for its reconstruction, in response to the Expression of Interest (EOI) dated November 3, 2020 floated by the bank.
RBI and PMC Bank are presently engaging with prospective investors in order to secure best possible terms for the depositors and other stakeholders while ensuring long term viability of the reconstructed entity, the central bank said in a statement.
Given the financial condition of PMC Bank, the process “is complex and is likely to take some more time”, it said, while extending the various regulator restrictions on the lender till June 30. Last time, the restrictions were extended in December 2020 till March 31, 2021.
News Source:- Cnbctv18