Punjab and Maharashtra Cooperative (PMC) Bank’s CEO Joy Thomas has said to Indian Cooperative correspondent on the phone, PMC is presently only carrying out due diligence to investigate the financial records of the two ailing banks of Goa- Mapusa Urban Cooperative and Madgaum Urban Cooperative Bank.
This is absolutely necessary before PMC enters into any agreement with the ailing banks, Thomas underscored.
Denying PMC is in any serious talks with both the banks about takeover, Thomas added that the matter has not yet been put before the board of directors.
“The two banks are having more than 30 branches in Goa. RBI has imposed directions on these banks on several occasions. PMC is only interested in a comprehensive assessment of the banks’ financial background”, claimed the PMC bank CEO.
PMC Bank has six branches across Goa and 137 branches in several states.
According to media reports, Reserve Bank of India (RBI) first imposed financial sanctions on Mapusa Urban on July 24, 2015, and has periodically extended curbs by six months. It had initially prevented customers from withdrawing over Rs 1,000, but from February, it allowed the bank’s customers to withdraw up to Rs 50,000 over a six-month period.
RBI imposed similar sanctions this month on Madgaum Urban Cooperative Bank but has allowed customers to withdraw Rs 5000 in a six month period. RBI has also said if any customer has any unpaid loans, then the money being withdrawn must be used to pay off the loan first.
Earlier, Mapusa Urban Cooperative Bank of Goa had approached the state government for financial help as the business restrictions imposed on the bank by RBI have greatly compromised its financial position.
The RBI first imposed directions on Madgaum Urban Cooperative Bank in 2014-15, when it stopped the bank from sanctioning loans after its capital to risk asset ratio (CRAR) declined drastically from 9.33% to 3.83% in the year ending March, 2015.