Punjab and Maharashtra Co-operative (PMC) Bank have invited interest (EoI) talks from interested investors. This function is intended to identify potential investors who are willing to take over their executives in order to revive the troubled lender and continue its day-to-day operations.
Once the normal day-to-day operations have begun, investors can turn PMC Bank into a small financial bank by submitting a proposal to the Reserve Bank of India in this regard. After the merger of the qualifying functions, the microfinance bank could transform into a general bank after a period of five years, PMC Bank also commented in an ad posted on Tuesday.
Indicating the right approach to finding investors, PMC Bank said financial institutions, including banks and NBFCs, as well as individuals or groups of people, companies, organizations, trusts or any other entities with a fair amount of profits could give EoIs to manage the bank. .
Investors should bring in the required amount of money so that the bank can meet the minimum required amount at the 9% rate risk (CRAR) rate. However, investors can explore the option of restructuring part of the deposit debt into larger / larger instruments, PMC Bank said in its ad.
The federal bank has said it can approach RBI’s Deposit Insurance and Credit Guarantee Corporation (DICGC) seeking funding of up to Rs 5 lakh for depositors.
After due diligence, the applicable proposals will be submitted to the Bank for consideration in preparation of the draft restructuring plan and other steps under Section 45 of the Banking Regulation Act, 1945, and added.
Interested investors may request a detailed Information Memorandum on payment of Rs 15,000 by November 20, 2020. Applications must be accompanied by payment details, duly disclosed disclosure agreement and required investor details, such as name, address, contact details, current status, financial status, etc.
Investors may require pre-billing clarification until November 30, 2020. The closing date for bidding is December 15, 2020.
PMC Bank was briefed by the RBI on September 29, 2019, after the central bank found that the lender was allegedly making fraudulent accounts to hide more than Rs 700 million in loans granted to Housing Development Infrastructure Ltd (HDIL) which almost sank. The Urban Partnership Bank and the RBI have been exploring ways to resolve and obtain bad loans.