The Reserve Bank of India (RBI) has given “in-principle” approval to Centrum Financial Services Ltd (CFSL) to set up a small finance bank (SFB), which will take over the beleaguered Punjab and Maharashtra Cooperative Bank (PMC Bank). It will get 120 days to commence operations. The amalgamation with PMC Bank is a separate process that would involve notification of the scheme by the government.
The first year the partners would put in Rs 900 crore, which will be used for starting the business and acquiring PMC Bank. The second round of equity funding of Rs 900 crore will happen in the following year.
The “in-principle” approval has been given to Centrum in accordance with the offer it made in response to the expression of interest (EoI) to take over PMC Bank. The consortium of Centrum and BharatPe had expressed an interest in taking over PMC Bank. According to reports, both Centrum and BharatPe will hold 50 per cent in the small finance bank and the assets and liabilities of the multistate cooperative bank will be transferred to it.
Important takeaways for all competitive exams:
- The Administrator Of PMC Bank: AK Dixit.
- PMC Bank Founded: 1984.
- PMC Bank Headquarters: Mumbai, Maharashtra.