Three offers received for PMC Bank resolution, says RBI Governor Shaktikanta Das

NEW DELHI:  Reserve Bank Governor Shaktikanta Das on Friday said it has received three bids for the troubled Punjab Maharashtra Cooperative (PMC) Bank and the central bank is now evaluating the offers.
“I have been informed that final offers have been received. Again, I’m given to understand that PMC Bank is evaluating the offers. After the evaluation is over, they will approach us. It is under evaluation,” Das said at a presser post RBI monetary policy announcement.

The announcement comes as a relief for thousands of PMC Bank customers, whose hard-earned money is stuck in the bank for more than a year. A section of the PMC Bank depositors is yet to get their deposits back. The statement indicates that the resolution for the crisis-ridden co-operative bank is likely in the 
immediate future.

In September 2019, the RBI had superseded the board of PMC Bank after it detected fraudulent transactions and loans extended to the realty company HDIL. Then last month, PMC Bank administrator A K Dixit in a letter to customers and stakeholders had informed that three prospective investors were given time till February 1, 2021 for submission of their final offer.

The RBI on December 18 said PMC Bank has received four Expressions of Interest, but did not specify the suitors. Sources indicated that among the potential bidders for the bank are UK-based Liberty Group, a combination of Centrum group and BharatPe. Besides, two other businesses have expressed interest in buying the Mumbai-based cooperative bank.

Eligible investors could be financial Institutions, including banks and NBFCs and individuals or group of individuals or any other such entities having adequate net worth. Sources say the RBI is planning to resolve the issue before March 31 this year.

Deal nitty-gritties to revive the stressed bank
As per the EoI, that was floated to identify a suitable investor, subsequent to commencement of the normal day-to-day operations, it will be open for the investor(s) to convert the bank into a Small Finance Bank by making an application to RBI.