Centrum-BharatPe had shown interest for the acquisition of the disputed bank PMC. After the approval from RBI, now the company is jointly planning for its development.
Spectrum BharatPe planning for PMC Bank
After the approval from the RBI for the acquisition of Maharashtra’s crisis-hit cooperative bank Punjab and Maharashtra Cooperative Bank (PMC), now Centrum Group and digital payment service provider startup company BharatPe are going to invest Rs 1,800 crore in it. According to the information given to the agency by a top official of Centrum, Rs 900 crore will be invested in PMC Bank in the first year. In this both the partners will share equally. The rest of the capital will be invested later.
Jaspal Bindra, executive chairman of Centrum Group, told the agency that the company has already set aside this capital for the small loan bank. 900 crores will be invested in this in the first year. Earlier on Friday, the Reserve Bank of India had given in-principle permission to Centrum Financial Services to start a small loan bank.
Centrum Financial Services had proposed to acquire PMC Bank on February 1, 2021 to form a small bank. PMC Bank was functioning under the administration of the Reserve Bank since September 2019. More than Rs 10,723 crore of depositors’ money is still stuck in this bank. Similarly, a total of Rs 6,500 crore of bank loans are stuck in recovery which have been declared as NPA.
In September 2019, RBI had banned the multi-state urban co-operative bank on charges of fraud, which also involved withdrawals by customers following a scam. The depositors had also staged several protests demanding refund of their money. Acting on this, on September 23, 2019, RBI superseded the board of PMC. Also, the bank was found guilty of violation of various regulatory restrictions due to detection of certain financial irregularities, concealment and wrong reporting of loans given to real estate developer HDIL.
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