Money & Banking

HDIL seeks meeting with PMC Bank administrator

Our Bureau Mumbai | Updated on October 01, 2019 Published on October 01, 2019

Earlier, PMC Bank's former MD reportedly admitted to the RBI that the bank's actual exposure to the bankrupt HDIL is over ₹6,500 crore. File photo   -  Paul Noronha

The Housing Development and Infrastructure Limited (HDIL) has sought a meeting with Jai Bhagwan Bhoria, the Administrator in-charge of the crisis-hit Punjab and Maharashtra Cooperative (PMC) Bank Ltd in a bid to find a way out of the issues that has hit the bank's operations.

"We have already issued letters requesting an appointment with the Administrator in charge of the Bank to put forth the true and correct picture as also to discuss a strategy hereby the interest of all stakeholders and in particular PMC Bank and its Depositors is protected," HDIL said in a statement to the stock exchanges.

HDIL said it has over a period of time availed of banking facilities from various banks and institutions, including the PMC Bank, in the normal course of business. "Adequate security cover in favour of the banks including PMC Bank have been created over the assets of the company for these facilities in due compliance with all banking regulations as per guidelines described RBI. by All the Books of the Company are audited and reflect a hue and fair picture as regards to the affairs of the Company and the Group,"it said

Also read: How the PMC Bank scam was kept hidden for many years

"We are facing a temporary cash flow issues due to the external environment in the Real Estate sector and due to the same the company has been admitted under IBC 2016, the issue we are actively attempting to resolve," HDIL added.

Earlier, PMC Bank's former MD reportedly admitted to the Reserve Bank of India (RBI) that the bank's actual exposure to the bankrupt HDIL is over ₹6,500 crore -- four times the permissible cap.

Published on October 01, 2019
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