Vision and Mission
“To emerge as a strong, vibrant, most preferred premier co-operative bank, committed to excellence in serving the customers, and augmenting the stakeholders value through concern, care and competence”.
Profile:
Punjab & Maharashtra Co-operative Bank is a Multi-State, Scheduled Urban Co-operative Bank with its area of operation in the States of Maharashtra, Delhi, Karnataka, Goa, Gujarat, Andhra Pradesh and Madhya Pradesh.
The humble beginning of the Bank was done in a small room at Sion, on February 13, 1984, as a single branch Bank. In a span of 35 years, the Bank has a wide network of 137 branches across six states.
The Bank stands among the top 10 cooperative banks of the country.
Reason:
As per the report, PMC's bank loan of Rs. 2500 crore to now-bankrupt real estate firm HDIL (Housing Development and Infrastructure Ltd.) was the major reason behind RBI's restrictions. Inspections showed that loans offered by PMC bank to a real state developer were not reported as bad loans despite the developer's financial stress. Thus RBI has put regulatory restrictions on Punjab Maharashtra Co-operative bank.
Later, PMC bank customers were allowed to withdraw only Rs. 1000 from their accounts as per the restrictions made by RBI, which is expected to remain for the next six months. But RBI increased the withdrawal limit to Rs. 10000 on 26th September 2019. The bank has 137 branches with over Rs. 11,000 crore deposits from its customers. Thus the order given by RBI was a great shock to lakhs of customers across the six states where this bank is being operated.
Loss:
As per a report in Mumbai Mirror, PMC Bank's loan of Rs 2,500 crore to now-bankrupt real estate firm Housing Development and Infrastructure Limited (HDIL) was the biggest reason behind RBI's restrictions. It was mentioned that the bank did not classify the loan to HDIL as NPA despite the firm's default on repayments. Eventually, RBI took stock of the situation and termed the loan as "complete loss", the report mentions.
RBIs restrictions on PMC bank shows that the loan was a complete loss. The central bank would have asked the bank to make provisions for 10 per cent of the total loan.
The co-operative bank had posted a net profit of Rs 99.69 crore in FY19 against Rs 100.90 crore reported in a year-ago period, registering a marginal decline of 1.20 per cent. However, the PMC Bank's total income rose by 10.89 per cent to Rs 1,297.98 crore versus Rs 1,170.49 crore in the previous year. While the bank's total advances increased 12.86 per cent year-on-year (y-o-y) to Rs 8,383.33 crore, total deposits climbed 16.89 per cent to Rs 11,617.34 crore during the financial year ended March 31, 2019.
The actions taken by RBI was too harsh, said the PMC bank's MD and added that the depositors' deposits were safe and we will be out of this situation soon.
So, in short, the highlights are
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