The RBI has extended the Direction on PMC Bank so that the interest of stakeholders could be safeguarded, the regulator says in a press release.
The release further adds the PMC Bank had invited Expression of Interest (EoI) from eligible investors for investment and equity participation for its reconstruction. The last date for submission of EoI was December 15, 2020.
The bank has informed Reserve Bank that in response to EoI, four proposals have been received. These proposals will be examined by the bank with regard to their viability and feasibility taking into account the best interest of the depositors. To undertake this process, the bank would need some more time.
Keeping in view the best interest of all stakeholders, it is considered necessary to extend the aforesaid Directions. Accordingly, it is hereby notified for the information of the public that the validity of the aforesaid Directive dated September 23, 2019, as modified from time to time, has been extended for a further period from December 23, 2020 to March 31, 2021, subject to review.
All other terms and conditions of the Directives under reference shall remain unchanged.
It bears recall that Punjab and Maharashtra Cooperative Bank Limited, Mumbai, Maharashtra, a Multi-State Urban Cooperative Bank was placed under All-Inclusive Directions from close of business on September 23, 2019.