Bonjour, new guests from small-town India
Puneet Dhawan of Accor is brimming with ideas on ways to revive the hospitality sector
Potential investors in the scam-hit Punjab and Maharashtra Co-operative (PMC) Bank have been allowed time till February 1, 2021 for submission of their final offer.
The potential investors include the Centrum Group-BharatPe combine and the UK-based Liberty Group. These investors had submitted their Expression of Interest (EoI) last month.
The bank’s Administrator AK Dixit, in a letter to customers and stakeholders, said: “As you are aware, the bank had issued EoI on November 3, 2020, inviting investors for revival/ reconstruction of PMC Bank.
Also read: RBI extends restrictions on PMC Bank to March
“Initially, four investors had shown their interest. Further process has been undertaken by three of them.”
The Administrator observed that the investors need to have a full understanding of the financial position of the bank before giving their final offer. Accordingly, they are at various stages of conducting detailed due diligence.
PMC Bank was placed under Directions by the Reserve Bank of India (RBI) with effect from the close of business on September 23, 2019 due to its poor financial position and negative net worth.
The Directions were necessitated as RBI came across a nexus between borrowers (promoters of a real estate group) and some bank officials, with the alleged fraud/ financial irregularities pegged at about ₹4,355 crore.
The EoI was floated to identify a suitable equity investor/ group of investors willing to take over management control so as to revive PMC Bank and commence regular day-to-day operations.
As per the EoI, subsequent to commencement of the normal day-to-day operations, it will be open for the investor(s) to convert the bank into a Small Finance Bank by making an application to RBI.
“The investor(s) should ideally bring in the capital required for enabling the bank to achieve the minimum required capital to risk weighted assets ratio (CRAR) of 9 per cent.
“However, the investors may explore the option of restructuring a part of deposit liabilities into capital/capital instruments,” the EoI said.
Also read: Road ahead for co-operative banks
The bank may also approach DICGC for its support for payment up to ₹5 lakh (insured deposits) to depositors under the provisions of the DICGC Act, 1961, it added.
According to the EoI, PMC Bank had total deposits of ₹10,727.12 crore, total advances of ₹4,472.78 crore and gross non-performing assets (NPAs) of ₹3,518.89 crore as on March 31, 2020.
Further, the share capital of the bank was ₹292.94 crore. However, the bank registered a net loss of ₹6,835 crore during 2019-20 and has a negative net worth of ₹5,850.61 crore, as per the EoI.
Puneet Dhawan of Accor is brimming with ideas on ways to revive the hospitality sector
Citroen’s first vehicle sports a novel design and European interiors. It is also meant to be as comfortable as ...
The pandemic is only the tip of the iceberg that the country’s cash-poor airlines — both regional and national ...
The government is yet to specify the framework of its recently announced old vehicle scrappage policy
Here is a checklist that equips you to discern the market nuances
Sensex, Nifty 50 have witnessed sharp decline
The fund has consistently outperformed S&P BSE 100 TRI over one, three and five years
Returns are superior to immediate annuity plans, but SCSS can secure better rates for new investors sooner if ...
With the public looking beyond mainstream media for reports from the ground, independent digital platforms are ...
A book on Badri Narayan is a tribute — albeit a belated one — to an artist who did not enjoy the recognition ...
The country hasn’t had a quiet moment since the military seized power on February 1
The Tatmadaw sees itself as an embodiment of the nationalist soul of Myanmar. But their brand of nationalism ...
Its name is the starting point of a brand’s journey and can make a big difference in the success sweepstakes
Sober spirits are the in thing
A peek into where ad spends went last year and where they are headed tomorrow
Can Swiggy Instamart disrupt the ecommerce groceries space, currently ruled by the Amazons and Big Baskets? ...
Three years after its inception, compliance with GST procedures remains a headache for exporters, job workers ...
Corporate social responsibility (CSR) initiatives of companies are altering the prospects for wooden toys of ...
Aequs Aerospace to create space for large-scale manufacture of toys at Koppal
And it has every reason to smile. Covid-19 has triggered a consumer shift towards branded products as ...
Please Email the Editor