Team of diverse investors puts in bid for embattled PMC Bank
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Synopsis
A consortium, led by Surinder Mohan Arora, an Indian businessman, submitted a plan on February 1, 2021, for revival and conversion of PMC Bank into a small finance bank (SFB), subject to certain conditions and regulatory forbearance from RBI.
The 37-year-old multi-state co-operative bank, which has been under an administrator since 2019, has outstanding of over Rs 10,368 crore to depositors.
A diverse set of investors including a German firm marketing pharmaceutical products, two offshore investors based in Mauritius, and an overseas corporate entity in Dubai are part of a consortium that has bid for the failed lender Punjab & Maharashtra Co-operative (PMC) Bank.
The central bank imposed the withdrawl cap on Deccan Urban Co-op bank citing its financial position
The Reserve Bank of India (RBI) has imposed a withdrawal cap of Rs 1,000 on customers of the Deccan Urban Co-operative Bank and has barred the lender from granting new loans or accepting deposits due to its liquidity position. The Karnataka-based lender is restricted to undertake any fresh business, including renewing any fresh loans or making new investments. The central bank said that the directions for the bank will remain in force for six months from the close of business on February 19 and are subject to review. Considering the bank s present liquidity position, a sum not exceeding Rs 1,000 only of the total balance across all savings bank or current accounts or any other account of a depositor may be allowed to be withdrawn, said the RBI In a statement late on Friday, February 19. (
Media reports quote officials saying ED has arrested Viva Group Managing Director Mehul Thakur and Director Madan Gopal Chaturvedi in connection with the PMC bank and Housing Development and Infrastructure Limited company scam.
ED conducted searches at the premises of the viva group and the premises of their associates. During the searches, Rs 73 lakh cash, incriminating digital and documentary evidence were recovered, said ED officials. The ED action is based on the FIR registered by EOW under various sections of IPC.
Earlier, properties of Rakesh Kumar Wadhawan and Wadhawan family trust valued at Rs 293 crore and jewellery worth Rs 63 crores had been attached.
Read more about BS Banking Annual: Worst may be coming as recovery path remains uncertain on Business Standard. The FSR has warned that while easy money is intended to support growth, it can encourage leverage, inflate asset prices and endanger financial stability
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