Courtesy-Mumbai Live
Centrum Financial Services has been given the in-principle approval on Friday by the Reserve Bank of India (RBI) to take over the scam-hit Punjab and Maharashtra Cooperative (PMC) bank. With the PMC take over, Financial services firm Centrum will be allowed to set up a small finance bank.
As mentioned in a statement by the Central bank, in specific pursuance to Centrum Financial Services Limited’s offer as dated on 1st February 2021, the in-principle approval has been accorded in response to the expression of interest notification dated 3rd November 2020 and has been published by the Punjab and Maharashtra Cooperative Bank Ltd, Mumbai.
To set up on tap Licensing of Small Finance Banks in the Private Sector as dated December 5, 2019, it is decided by the Reserve Bank of India to grant in-principle approval to Centrum Financial Services Limited, as said by the RBI.
The four groups that have submitted to the RBI for the acquisition includes BharatPe and Centrum Group. The fraud hit multi-state urban cooperative bank was imposed with restrictions by the Reserve Bank of India in September 2019 including restrictions on withdrawals by customers, following a scam. Several protests demanding their money back were done by the depositors.
Placing it under various regulatory restrictions after detection of certain financial irregularities, the Reserve Bank of India had superseded the board of Punjab and Maharashtra Cooperative (PMC) Banks on 23rd September 2019.
A net loss of ₹6,835 crores was registered by PMC during 2019-20 while the share capital of the bank is ₹292.94 crores along with a negative net worth of ₹5,850.61 crores.