RBI appoints new administrator of PMC Bank; revival plans yet to come

Despite exploring various options for the resolution of Punjab and Maharashtra Co-operative (PMC) Bank, the Reserve Bank of India (RBI) is yet to come up with a plan for its revival. RBI has also appointed AK Das, ex-general manager at Union Bank of India, as the new administrator of the bank, with effect from September 23 after the present administrator, JB Bhoria, stepped down from his role as the administrator of the bank due to health reasons.

The Press Release by the RBI reads, "While the Administrator of PMC bank and the RBI have been exploring various options for resolution of the bank, several factors such as huge losses incurred by the bank resulting in its entire net worth getting wiped out, steep erosion in deposits, etc. continue to pose serious challenges in finding a workable plan for revival of the bank."

"The bank has also been making efforts for recovery of NPAs although the progress has been constrained because of the COVID-19 pandemic and legal complexities. Nevertheless, in the interest of the depositors, the PMC bank and the RBI are continuing to engage with the stakeholders to explore the possibility of finding a viable and workable solution for the resolution of the bank," it added.

Last year on September 23, the banking regulator superseded the board of PMC bank, after discovering fraud and financial irregularities in the bank, to protect the interest of the depositors and to secure proper management of the bank.