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Out of Punjab and Maharashtra Co-operative (PMC) Bank’s total exposure of ₹6,226.01 crore as on March 31, 2019, to the HDIL Group, only ₹439.58 crore was disclosed to the Reserve Bank of India (RBI) and the balance ₹5,786.43 crore remained undisclosed, according to the reply given by Anurag Sing Thakur, Minister of State for Finance, to a question on the bank in the Lok Sabha.
Steep deterioration
The exposure to the HDIL Group was camouflaged/ misreported to the RBI and has since been classified as non-performing asset, requiring huge provisioning to be made as per the central bank’s instructions. This resulted in a steep deterioration in the financials of the bank, the minister said.
Probe under way
Meanwhile, based on a complaint filed by the bank against its officials and borrowers associated with the fraud/financial irregularities in the bank and manipulation of its books of accounts, the Economic Offences Wing, Maharashtra Police, has started its investigations into the matter, as per the reply. Forensic auditors have been appointed to look into the related transactions.
The RBI superseded the board of directors of PMC Bank on September 23, 2019, and appointed an administrator in its place for a period of six months.
An advisory committee, comprising three experienced professionals, has also been appointed to assist the administrator.
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