By BharatPe and Centrum Group have recently submitted a joint expression of interest to the Reserve Bank of India to acquire Punjab and Maharashtra Cooperative (PMC) Bank. Centrum and BharatPe have decided to maintain equal stakes in PMC.
Liberty House Group has also submitted an EOI to RBI. Also, RBI has received four EOIs for PMC Bank. The identities of the two other contenders have not been recognized. The RBI extended restrictions on PMC financial organizations until March 2021. Until then, RBI will check the proposals of the suitors.
The acquisition would increase BharatPe’s lending enterprise if profitable. It aims to construct a Rs 5,000-crore mortgage book in the next two years. According to a report, BharatPe’s will be delivering its tech capabilities on the prime of core monetary provider experience of Centrum and will run it as a small finance financial organization.
The doc that is inviting EoIs stated it’s going to talk to the new buyers willing to convert PMC Bank into a small financial organization.
PMC Bank reported deposits of Rs 10,727 crore as of March 2020. The bank also showed a complete advance of Rs 4,473 crores and gross non-performing property of Rs 3,519 crores. The total share capital of PMC Bank is Rs 293 crores. But the bank registered a web loss of about Rs 6,835 crores in the monetary twelve months by the end of March 2020, along with the adverse web value of Rs 5,850 crore.
PMC Bank faced hassle after the detection of the monetary irregularities as well as misreporting of loans given to the actual real estate developer HDIL. This led to several authorized circumstances, which can possibly be difficult for an investor because PMC Bank has a community of 137 branches, with prime locations in Mumbai.
