Maharashtra mulls merging PMC Bank with MSC Bank

In a bid to provide relief to depositors, the Maharashtra government is exploring the possibility of merging Punjab & Maharashtra Cooperative (PMC) Bank with Maharashtra State Cooperative (MSC) Bank.

“I spoke to the MSC Bank chairman the day before yesterday. We have suggested to MSC Bank that they merge PMC Bank with it so that the poorest depositors get relief,” Maharashtra Cabinet Minister Jayant Patil said here on Thursday.

Patil, president of the NCP’s Maharashtra unit, was recently sworn in as a Minister in the Shiv Sena-NCP-Congress alliance government. “We want to assure PMC Bank depositors that the government stands with them. The merger of the two banks will definitely help small depositors,” the minister added.

However, it is not clear how the merger will happen with the Reserve Bank of India taking steps to sell land belonging to PMC Bank in an attempt to pay depositors.

“There is a forensic audit, which is underway and the final report is expected by the end of this month. Simultaneously, PMC Bank, with the help of professional valuers, is assessing the realisable value of assets which have been mortgaged by the companies and those identified by the Economic Offences Wing of the Mumbai Police and the Enforcement Directorate,” Shaktikanta Das, RBI Governor, said on Thursday.

“Once we get the forensic auditors’ report by the end of this month and we have a final number (on the realisable value of assets) then a call will be taken about the further course of action. In the meantime, this coordination mechanism will work on recovering the bank’s dues and putting money back into the bank,” he added.

The RBI had imposed withdrawal restrictions on account-holders after it found alleged irregularities to the tune of ₹4,355 crore due to diversion of money to infrastructure firm HDIL.