PMC Bank will have a new owner in Centrum and BharatPe
BharatPeand Centrumhad formed a consortium last year to take over the PMC bank
- The multi-state cooperative bank had over 16 Lakh account holders, with ₹10,727 crore in deposits
- The PMC Bank has been facing regulatory action, after 73% of its loans turned out to be non-performing
View all Offers
View all Offers
OnePlus Nord 2 5G (Gray Sierra, 8GB RAM, 128GB Storage) I Extra upto Rs.1000 off on Exchange₹ 29999Buy On
- 18% OFF
Redmi 9A (Nature Green, 2GB RAM, 32GB Storage) | 2GHz Octa-core Helio G25 Processor | 5000 mAh Battery₹ 6999₹ 8499Buy On
OnePlus Nord 2 5G (Blue Haze, 8GB RAM, 128GB Storage) I Extra upto Rs.1000 off on Exchange₹ 29999Buy On
- 19% OFF
Redmi Note 10 (Aqua Green, 4GB RAM, 64GB Storage) -Amoled Dot Display | 48MP Sony Sensor IMX582 | Snapdragon 678 Processor₹ 12999₹ 15999Buy On
- 18% OFF
Redmi 9 (Carbon Black, 4GB RAM, 64GB Storage) | 2.3GHz Mediatek Helio G35 Octa core Processor₹ 8999₹ 10999Buy On
Though the official notification only states Centrum’s approval, it is important to note that three-year-old fintech startup BharatPe and Centrum had formed a consortium last year to take over the PMC bank. The duo had also filed a joint expression of interest (EoI) to RBI, BharatPe’s cofounder Ashneer Grover had previously confirmed.
TOP VIDEOS FOR YOUThe PMC Bank has been facing regulatory action and investigations over the alleged irregularities in certain loan accounts. The problem began when 73% of PMC Bank’s loans were found to be non-performing in September 2019. These loans, worth ₹6,500 crore, were issued to a real estate company Housing Development and Infrastructure Ltd (HDIL).
AdvertisementRBI superseded the PMC Bank board the same month, after it found that the bank had allegedly been running fraudulent transactions for several years to lend money to HDIL through fictitious accounts. This was in violation of single-party lending rules. The central bank imposed restrictions on deposit withdrawals.
The multi-state cooperative bank had over 16 lakh depositors, of which 60% account holders had up to ₹10,000 each in their accounts, 78% had up to ₹50,000 each and 84% had up to ₹1 lakh each. The bank had total deposits worth ₹10,727 crore, with total advances of ₹4,472 crore and non-performing assets (NPAs) of ₹3,518 crore.
Founded in 1984, PMC Bank had 137 branches across six states -- Maharashtra (103), Delhi (6), Karnataka (15), Goa (6), Gujarat (5) and Madhya Pradesh (2). It was rated among the top 10 cooperative banks in the country.
The RBI in its ‘in-principle’ approval notice to Centrum said that “the RBI would consider granting a licence for commencement of banking business under Section 22 (1) of the Banking Regulation Act, 1949, on being satisfied that the applicant has complied with the requisite conditions laid down by RBI as part of “in-principle” approval.”
Whether it's half a million or three million — 'low skilled' IT jobs in India are definitely at risk
Here’s how El Salvador’s Bitcoin experiment is playing out so far — the good, the bad and the ugly
- The Tokyo Olympics are a hive of NFT activity — from pins to moments to artwork
- Twitter is rolling out an update to make Twitter Spaces easier to share and discover
- Tencent and Alibaba Group have lost more than $100 billion in July as China cracked down on internet giants
- Cadbury Dairy Milk's next phase of 'heart the hate' campaign urges bystanders to stand up against cyberbullying by sharing a Purple Heart
- Coinbase, CoinDCX, WazirX and other crypto firms aren’t just looking for engineers but designers, social media wizards, and managers too