RBI Appoints New Director of PMC Bank; no recovery plan for the bank yet

The Reserve Bank of India (RBI) said on Tuesday that despite exploring various options for the resolution of the Punjab and Maharashtra Co-operative Bank (PMC), it had not yet developed a plan for its revival. . He also appointed AK Das, former Managing Director of Union Bank of India, as the new director of the bank, effective September 23.

The current administrator, JB Bhoria, has resigned as administrator of the bank for health reasons.

“While the bank administrator PMC and the RBI explored various options for the resolution of the bank, several factors such as the huge losses suffered by the bank resulting in the erasure of all its net worth, the significant erosion of deposits, etc. pose serious challenges to finding a viable plan for the bank’s revival, ”the RBI said.

READ ALSO : RS passes banking amendment bill to bring cooperative banks under RBI control

Efforts are also being made to recover money from bad accounts that have gone sour, but the coronavirus (Covid-19) pandemic has slowed progress and legal complexities also add to recovery problems.

“Nonetheless, in the interest of depositors, PMC Bank and RBI continue to engage with stakeholders to explore the possibility of finding a viable and workable solution for the bank’s resolution,” the RBI added.

Last year, on September 23, the banking regulator replaced the board of directors of PMC bank, after discovering fraud and financial irregularities in the bank, in order to protect the interests of depositors and ensure good bank management.

Dear reader,

Business Standard has always strived to provide up-to-date information and commentary on developments that matter to you and have broader political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering has only strengthened our resolve and commitment to these ideals. Even in these difficult times resulting from Covid-19, we remain committed to keeping you informed and updated with credible news, authoritative views and cutting-edge commentary on relevant current issues.
However, we have a demand.

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

Support quality journalism and subscribe to Business Standard.

Digital editor


Source link

About Scott Conley

Check Also

Saugerties man accused of coronavirus scam arrested in New Jersey area

ALBANY – The FBI on Thursday morning arrested a Saugerties man in the New Jersey …

Leave a Reply

Your email address will not be published. Required fields are marked *