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Punjab and Maharashtra Co-operative Bank gets a new administrator

MUMBAI: Reserve Bank of India (RBI) has appointed former Union Bank of India general manager AK Dixit as the new administrator of the beleaguered Punjab and Maharashtra Co-operative Bank (PMC) as the present administrator JB Bhoria is stepped down on September 22 due to health reasons.

PMC was placed under RBI directions on September 23, 2019, after its NPAs rose sharply due to loans given to real estate company HDIL and its promoters the Wadhawan’s with accounting for it in the bank’s book.

The directions have been subsequently extended and is presently valid till December 22.

“While the administrator of PMC bank and the RBI have been exploring various options for resolution of the bank, several factors such as huge losses incurred by the bank resulting in its entire net worth getting wiped out, steep erosion in deposits, etc. continue to pose serious challenges in finding a workable plan for revival of the bank. The bank has also been making efforts for recovery of NPAs although the progress has been constrained because of the COVID-19 pandemic and legal complexities,” RBI said.

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