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Punjab National Bank (PNB) on Wednesday informed its customers that it is not related to the troubled Mumbai-based Punjab and Maharashtra Co-operative Bank (PMC Bank), which has been placed under regulatory restrictions.
This clarification probably comes in the wake of some customers mistaking PNB for PMC Bank.
"PMC is not at all related to PNB, which is a strong nationalised bank in your service since last 125 years," said the notice to customers.
The RBI has placed PMC Bank under Directions following a scrutiny , whereby it is understood to have found irregularities in the loan classification of a Mumbai-based real estate company.
According to the RBI’s directions, which will be in force for six months, without a prior written approval, PMC Bank cannot grant or renew any loans and advances, make any investment, and incur any liability, including borrowing funds and accepting fresh deposits.
The RBI has capped withdrawals at ₹1,000 per customer for the six-month period. The regulator, however, said the issue of the directions should not be construed as a cancellation of the banking licence.
According to regulatory sources, the bank’s board has been superseded. A retired senior RBI official has been appointed as an administrator, they added.
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