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.
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.