The Reserve Bank of India (RBI) on Monday placed in public domain a draft scheme for amalgamation of the Punjab and Maharashtra Cooperative (PMC) Bank with Unity Small Finance Bank Ltd. (USFB), a banking company incorporated in India under Companies Act, 2013, and having its registered office in New Delhi.
USFB commenced operations with effect from November 1, 2021.
The draft scheme of amalgamation envisages takeover of the assets and liabilities of PMC Bank, including deposits, by USFB in terms of the provisions of the scheme, giving a greater degree of protection for the depositors.
“It may be seen that USFB is being set up with capital of about ₹1,100 crore as against the regulatory requirement of ₹200 crore for setting up of a small finance bank under the guidelines for on-tap licensing of small finance bank in private sector, with provision for further infusion of capital at a future date after amalgamation,” the banking regulator said.
Mumbai-based PMC Bank Limited, a multi-State urban cooperative bank, was placed under all-inclusive directions with effect from the close of business hours on September 23, 2019, on account of fraud, which led to a ‘steep deterioration’ in the networth of the bank.
The directions were last extended up to December 31, 2021.