The government of India has approved the merger of the debt-ridden of the Punjab and Maharashtra Co-operative Bank Ltd. (PMC Bank) with Unity Small Finance Bank Ltd with immediate effect.
All the branches of the PMC Bank will function as branches of Unity SFB with effect from January 25, 2021, the RBI stated.
USFBL is making necessary arrangements to implement the provisions of the scheme.
The scheme of amalgamation envisages takeover of the assets and liabilities of PMC Bank, including deposits, by the USFBL in terms of the provisions of the scheme.
Following the detection of certain financial irregularities, the RBI superseded the board of PMC Bank and imposed regulatory restrictions, including a cap on customer withdrawals, in September 2019. Since then, the restrictions have been extended several times.
