AK Dixit has been recruited as the new administrator of PMC Bank and here is why. Due to health reasons, the previous administrator Jai Bhagwan Bhoriya has resigned on September 22nd, 2020. Hence as his replacement, the Ex-General Manager of Union Bank AK Dikshit has been appointed by the RBI to serve as the administrator for Punjab and Maharashtra Co-operative Bank.
The lender bank was accused of hiding fictitious accounts of rupees 6700 crores in loans that have been extended to the almost bankruptcy. Other than that the RBI has also said that the administrator of PMC Bank will work in coordination with the central bank. This work of coordination can help the PMC Bank to overcome some of their losses however these losses are really very huge and have several factors linked to it. The factors being serious challenges faced in the work with a plan, a huge impact on the deposits, a fast-paced down-stooping level of net worth.
The above factors are more than enough to act as hurdles in the revival plan to top it off we also have a pandemic that has been dealt with by the PMC Bank. The PMC Bank has been trying to make its bad loan stone into good ones that have been affected due to the covid-19 pandemic however the complexities are really high.
Thus PMC Bank has been encouraging investors to help them to get back on their feet. Investors have thus requested a detailed memorandum which is rightfully known as Information Memorandum (IM) on payment of rupees 15000 by November 20, 2020. Invest the investors can also provide from November 30, 2020 – 2 December 15, 2020, hopefully, such moves will help the PMC Bank to revive and get on track with the other banks.