Punjab and Maharashtra Cooperative Bank (PMC Bank) will recast its balance sheet to get a true and fair picture of the accounts, the lender said after its administrator met Reserve Bank of India (RBI) Governor Shaktikanta Das and other senior officials.
Last month, the RBI had imposed several restrictions on the bank, including a cap on deposit withdrawals after it was alleged the bank had been hiding bad loans for many years. The board of the bank was superseded by the RBI which appointed an administrator along with three advisers. A forensic audit of the accounts has been ordered.
“While discussing various operational issues, it was informed that the bank would expedite the process of assessment of the realisability of the securities available with the bank and the forensic audit presently underway,” the bank said in a statement.
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“The bank will also recast its balance sheet at the earliest so as to arrive at the true and fair picture of its accounts,” the statement said.
The RBI had imposed several restrictions on PMC Bank including ₹1,000 cap on deposit withdrawal after the close of business hours of September 23. Then, on September 26, the deposit withdrawal limit was increased to ₹10,000 and to ₹25,000 on October 3 and to ₹40,000 on October 14.
The Economic Offences Wing, Maharashtra Police, has started investigations into the matter.
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PMC is a multi-State scheduled urban co-operative bank with operations in the States of Maharashtra, Delhi, Karnataka ,Goa, Gujarat, Andhra Pradesh and Madhya Pradesh. Started in 1984 as a single branch bank, it now has 137 branches across six States.