Busines

Dixit named PMC Bank administrator

The Reserve Bank of India (RBI) has appointed a new administrator for the scam-hit Punjab and Maharashtra Co-operative (PMC) Bank Ltd.

“The present Administrator J.B. Bhoria is stepping down on September 22 due to health reasons. It has been decided to appoint A.K. Dixit, ex-general manager, Union Bank of India, as the new Administrator of the bank with effect from September 23,” the RBI said in a statement.

PMC was placed under RBI’s administration onSeptember 23, 2019. The directive is presently valid till December 22.

The RBI said while it has been exploring various options for resolution of the bank, several factors such as huge losses incurred by the bank resulting in its entire net worth getting wiped out, steep erosion in deposits, continue to pose serious challenges in finding a workable plan for revival of the bank.

“The bank has also been making efforts for recovery of NPAs although the progress has been constrained because of the COVID-19 pandemic and legal complexities,” it said.

“Nevertheless, in the interest of the depositors, the PMC bank and the RBI are continuing to engage with the stakeholders to explore the possibility of finding a viable and workable solution for the resolution of the bank,” it added.

Recommended for you
  1. Comments will be moderated by The Hindu editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.

Printable version | Sep 22, 2020 11:02:36 PM | https://www.thehindu.com/business/dixit-named-pmc-bank-administrator/article32672178.ece

Next Story