Bharat Pe, Centrum in race to acquire PMC Bank; submit joint EoI to RBI
Bharat Pe and Centrum Group are among four groups which have made the submissions to the Reserve Bank of India (RBI) for the acquisition. Meanwhile, both Bharat Pe and Centrum will hold equal stakes in the venture
BusinessToday.In | December 21, 2020 | Updated 13:48 IST
If successful, the acquisition will boost Bharat Pe s lending business as it targets to build a Rs 5,000 crore loan book in two years
Indian QR code-based payment app Bharat Pe and financial services company Centrum Group have reportedly submitted a joint expression of interest (EoI) to the Reserve Bank of India (RBI) to collectively take over the troubled Punjab and Maharashtra Cooperative (PMC) Bank.
Synopsis
If successful, an acquisition will boost BharatPe’s lending business. It aims to build a Rs 5,000-crore loan book in two years
(This story originally appeared in on Dec 21, 2020)Merchant payments startup BharatPe and financial services firm Centrum Group have submitted a joint expression of interest (EoI) to the Reserve Bank of India (RBI) to take over scam-hit Punjab and Maharashtra Cooperative (PMC) Bank, a source aware of the matter said. Centrum Group is co-promoted by Jaspal Bindra, a former Standard Chartered honcho. BharatPe and Centrum will hold equal stakes in the venture.
Sources added Ludhiana-born British businessman Sanjeev Gupta’s Liberty House Group has also submitted an EoI to the RBI. The central bank has got four EoIs for PMC Bank. The identities of the other two contenders are not known yet. On Friday, the RBI extended the restrictions on PMC bank till March 2021, by when it is expected to study the proposals of the suitors.
The right way to sell a troubled bank December 21, 2020, 11:18 PM IST
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The RBI did well to invite expressions of interest for takeover of the troubled Punjab and Maharashtra Cooperative (PMC) Bank, rather than nominate a buyer. Competitive bidding, subject to the fit and proper criteria being met, will ensure fairness and bring about transparency in the acquisition process.
Four suitors have responded, including a combination of BharatPe and the Centrum Group, besides Liberty House. After evaluation of the bids, the viable proposal would be sent to RBI, to prepare a draft scheme for reconstruction. The way PMC Bank is being sold should serve as a model for the takeover of other troubled banks, in the absence of a statutory framework for resolution of financial institutions, as proposed in the Financial Resolution and Deposit Insurance
Centrum Financial Services raises ₹50 crore through PTCs
December 13, 2020
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Centrum Financial Services Ltd (CFSL), the NBFC arm of financial services major Centrum Group, has raised ₹50 crore by securitising its supply chain loan book, which was acquired from L&T Finance two years ago. Further, the company is also looking to raise another ₹25 crore through the same route.
The business, which provides financing with an average ticket size of ₹50 lakh to ₹1.5 crore to MSME supply chain dealers and vendors, has raised the funding from Indian high networth individuals, family offices and treasuries among others. However, the names of the investors could not be immediately ascertained.