RBI approves merger plan for PMC Bank

New Delhi, January 25

The RBI has decided to merge the fraud-hit PMC Bank with Unity Small Finance Bank Ltd promoted by Centrum Financial Services and Resilient Innovations.

Due to fraud by HDIL Ltd and its Group companies, there was complete erosion of capital and substantial erosion of the bank’s deposits, leading to RBI freezing its operations to protect the interests of the depositors and to ensure that the bank’s available resources are not misused.

Centrum Financial and Resilient Innovations had expressed interest in February 2021 to acquire the PMC Bank through an amalgamation scheme with a new small finance bank. Accordingly, after acquiring a licence from the RBI, Unity Small Finance Bank began transacting business from November 1, 2021. The promoters have infused capital of over Rs 1,100 crore in Unity Small Finance Bank. Equity warrants of Rs 1,900 crore, to be exercised anytime within eight years, have been issued by the Bank to the promoters to bring more capital.

Unity Small Finance Bank to take over

Fraud-hit Punjab and Maharashtra Co-operative (PMC) Bank will be merged with Unity Small Finance Bank Ltd. promoted by Centrum Financial Services along with Resilient Innovations