Who are the Promoters of HDIL? The promoter of HDIL is the former chairman of PMC Banks and rest is the scam.
Very few people are aware of the Punjab and Maharashtra Co-operative Bank, PMC bank, in the eastern part of country. Cooperative banks are formulated for the social welfare of society, not for profit maximization, the ideology behind creating a cooperative bank. PMC bank is the largest urban cooperative bank to be placed under the RBI watch since 2001. PMC bank was founded in the year 1984 in a single room from a single branch currently the bank touched 137 branches across six states Maharashtra, Delhi, Karnataka, Goa, Gujarat, Andhra Pradesh, and Madhya Pradesh.
What went wrong for such a bank which started with a modest outlook?
PMC bank recently suspended Managing Director and Chief Executive Officer (CEO), Mr. Joy Thomas, after they admitted in a “confession letter “ to RBI that the actual exposure to HDIL is over Rs 6,500 crore – four times the regulatory cap prescribed. The financials of PMC bank showed as on 31-March 2019, Net profit of Rs 99.69 core, NPA only 2.19%. A bank earning profit as well as the NPA under control went doldrums. Auditors have not highlighted the fact of loan exposure of Rs 6500 crore, which is, in fact, a massive regulatory weakness.
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