How RBI plans to revive PMC Bank through a three-pronged strategy

In a first, DICGC to be roped in to fund revival; RBI to open credit line to tide over liquidity issues; minimum capital from promoter to meet 9% capital adequacy ratio; 3 investors submit final offer

Topics
PMC Bank | Reserve Bank of India | prompt corrective action

Manojit Saha  |  Mumbai 

The mechanism to revive troubled lender Punjab and Maharashtra Cooperative (PMC) Bank having entered the last leg with the deadline for a final offer from prospective suitors expiring on Monday, the Reserve Bank of India (RBI) is devising a three-pronged approach for a reconstruction of the multi-state cooperative bank.

If the revival formula works as planned, it will be the first time in recent years that the Deposit Insurance and Credit Guarantee Corporation (DICGC) will have been roped in for the revival of a stressed bank. According to highly-placed central banking sources, ...

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, February 04 2021. 09:40 IST
RECOMMENDED FOR YOU