RBI-Appointed Administrator Of PMC Bank To File An FIR Against Former Management For Financial Irregularities
[ By Bobby Anthony ]An FIR is likely to be filed at the Economic Offences Wing (EOW) of the Mumbai police shortly by the bank’s RBI appointed administrator against the former management of the Punjab and Maharashtra Co-operative (PMC) Bank for financial irregularities.The development comes after the bank’s suspended managing director Joy Thomas confessed to the RBI that he had extended...
An FIR is likely to be filed at the Economic Offences Wing (EOW) of the Mumbai police shortly by the bank’s RBI appointed administrator against the former management of the Punjab and Maharashtra Co-operative (PMC) Bank for financial irregularities.
The development comes after the bank’s suspended managing director Joy Thomas confessed to the RBI that he had extended loans worth Rs 6,500 crore to real estate developer HDIL and its related entity without informing all former board members.
He has also accepted not classifying loans given to HDIL as non-performing for years together even after there was default on repayments.
Incidentally, PMC's exposure to the HDIL group is nearly 73% of its total loan book size of Rs 8,880 crore as of September 19, 2019 when regulations stipulate that single entity exposure limit for banks ought to be 15% of their capital fund, while exposure limit for group companies is 20%.
PMC Bank’s suspended managing director had also allegedly revealed that the actual NPA was around 70% as against a reported net NPA of 2.19% as of March 2019.