NCUI President Dileep Sanghani has welcomed the merger of PMC Bank with Unity Small Finance Bank. However, he said that it has to be ensured that the depositors’ money is secure, and they are able to get back the money.
The Central Government has approved the proposed merger of PMC Bank with Unity Small Finance Bank (USFB), stated RBI recently. The move is, however, being assailed both by NAFCUB and Sahakar Bharati. NACUB President Jyotindra Mehta says that it is a case of amalgamation and not that of merger. Merger would have benefitted the depositors, he adds.
Besides Sanghani, G.H. Amin, Former President, NCUI and Chairman, Cooperative Bank of India has also welcomed the move of RBI. He said, “This is the first cooperative bank which has been merged with a private bank. Now the money of the depositors, who are from both the cooperative and private sector, is safe and secure”.
In a press release NCUI quotes Bhima Subrahmanyam, Managing Director, National Federation of State Cooperative Banks (NAFSCOB), and President, International Cooperative Banking Association who says “Its welcome the move, if measures are taken to help the depositors at once, if it is not the case, then it needs to be reconsidered.”
He further said that the Draft RBI Scheme envisages settlement of all dues of depositors in a phased manner, which is not correct. All the depositors should have been helped with their deposits even at the time of finalization of Draft Scheme.
Bhima opined that the guidelines for amalgamation of bank according to B.R. Act, 2020 is not followed. He further felt that RBI draft scheme for merger of PMC bank with bigger UCBs would have been more desirable.
It bears recall that PMC Account Holders Forum has condemned the move saying the Unity SFB has hugely benefited from the deal as it got license, assets, and liquid but no liabilities, said representatives of the Depositors Forum. The PMC liabilities are being paid by the bank in an unfair manner over a large period of time. All the haircut is being taken by depositors with the Centrum Group laughing on the banks, added a victim.
NAFCUB President Jyotindra Mehta also felt that PMC Bank should have been merged with a larger entity that would have taken all the liabilities and assets of the bank. Sahakar Bharati is opposed to the staggered payment and has threatened to go to the court on the issue.
