Industry

PMC Bank depositors’ worries to be taken up with RBI: Minister

File photo of NCP leader Jayant Patil.

File photo of NCP leader Jayant Patil.   | Photo Credit: Emmanual Yogini

Maharashtra State Minister Jayant Patil will take up concerns of depositors with the RBI.

The Maharashtra government will take up concerns of the troubled Punjab and Maharashtra Cooperative (PMC) Bank’s depositors with the RBI in a couple of days, state minister Jayant Patil said on Thursday.

“I will be speaking to a senior Reserve Bank of India (RBI) officer in a day or two to address the concerns of depositors. The Maharashtra government sympathises with the PMC Bank depositors,” Mr. Patil told reporters.

Mr. Patil recalled that he had suggested the merger of PMC and Maharashtra State Cooperative (MSC) bank to the latter’s chairman.

“We had a discussion with the MSC bank chairman. The PMC is a multi-state cooperative bank, while the MSC is a bank operating in a single state. Hence, I was told, their merger is impossible and not in line with law,” he said.

The PMC Bank, which has around 16 lakh depositors, was placed under an RBI administrator on September 23 for six months due to massive under-reporting of dud loans.

The bank, over a long period of time, had given more than ₹6,700 crore in loans to the Housing Development and Infrastructure Ltd (HDIL), which is 73% of its total advances.

Its total loans stand at around 9,000 crore and the deposits at over ₹11,610 crore. There have been massive protests across city from the PMC Bank depositors following the RBI action.

Twelve people, including top officials of the PMC Bank and HDIL, have so far been arrested by Mumbai Police’s Economic Offences Wing in connection with the scam.

At least eight depositors, who had high quantum of money stuck with the bank, died in the last couple of months, including one who committed suicide.

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Printable version | Feb 28, 2020 5:49:32 AM | https://www.thehindu.com/business/Industry/pmc-bank-depositors-worries-to-be-taken-up-with-rbi-minister/article30285997.ece

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