The urban cooperative banking sector was shaken by foundation as soon as the news of RBI imposing restrictions on a supposedly healthy UCB- Punjab and Maharashtra Cooperative Bank hit the stand.
While co-operative experts stood bewildered at the development, the helpless depositors ran to the bank to claim their money. It was sight of utter mayhem at different branches of the PMC Bank.
More than 51 thousand depositors connected with the Maharashtra based Multi State Scheduled Bank are in panic after RBI imposed direction on the bank on Monday. TV cameras stayed glued to branch offices telecasting the woes of depositors throughout Tuesday.
As per the RBI direction, depositors will be allowed to withdraw a sum not exceeding Rs 1000 of the total balance in every savings bank account or current account or any other deposit account.
The PMC Bank CEO K Joy Thomas was not available for comment when Indian cooperative tried to get his reaction to the development. It is being reported that the bank grossly under-reported bad loans which led to the RBI putting the bank under direction.
Meanwhile, helpless depositors have showed their anger on social media. One depositor wrote, “This #PMCbank action by RBI stinks to high heavens. If the bank was involved in some sort of major fraud, why do the depositors have to bear the brunt?”. Another wrote, “My appeal to @DasShaktikanta Governor & @RBI pls Consider to increase d withdrawal limit frm 1k to 10k in next few days. Due to this facility form #pmcbank will be beneficial for customer and senior citizens”.
Yet another depositor wrote, “Really Sad to see people cannot withdraw their own hard- earned money & standing ovation to RBI for their decision to allow depositors to withdraw 1000Rs in 6 months. Howdy India”. “We have current & savings a/c in PMC with FD’s…Now there is no money at home & what do we do as they are not giving us our own hard-earned money”, depositors wrote.
Following the RBI imposing restrictions on the bank, aggrieved depositors of the bank have created trouble and noisy situation in several branches of the bank in Maharashtra and others states.
As on 31st March 2019, the cooperative bank had a business mix of Rs 20,000 crore. Deposit based is Rs 11,617.34 crore and loans and advances of Rs 8,383.33 crore. The bank’s network of 137 branches is spread across Maharashtra, Delhi, Karnataka, Goa, Gujarat, Andhra Pradesh and Madhya Pradesh. The bank earned a net profit to the tune of Rs 99.69 crore, according to the PMC Bank Annual Report.
The PMC Bank MD sent a text message to all the depositors on Tuesday writing, “I, Mr. Joy Thomas, MD regret to inform you that PMC Bank has been put under regulatory restriction under section 35A of B.R. Act by RBI for a period of six due to irregularities disclosed to RBI”.
“As the MD of the bank, I take the responsibility and assure all the depositors that these irregularities will be rectified before the expiry of six months. All efforts are made to remove the restrictions by rectifying the irregularities. I know it is a difficult time for all of you and any apology may not remove the pain you are undergoing. We assure that we will definitely overcome this situation and stand strong”, he further wrote.