The Ministry of Finance, through a gazette notification issued on January 25, 2022, has sanctioned and notified the amalgamation scheme of Punjab and Maharashtra Co-operative Bank (PMC Bank) with Unity Small Finance Bank (Unity Bank), protecting it from liquidation and bringing relief to all stakeholders. PMC Bank’s approximately 110 branches and over 1,100 employees will operate as Unity Bank, providing security and stability in their employment along with offering uninterrupted service to clients.
Unity Bank will repay the full principal amount due to all depositors, as per the scheme of amalgamation. About 96% of depositors have deposits up to Rs 5 lakhs, will be paid upfront (subject to completion of the requirements as per DICGC rules). These depositors can choose to either withdraw or retain this amount with Unity Bank, or make additional deposits, and take advantage of the attractive interest rate up to 7%, being offered on savings accounts.
Additionally, institutional depositors will receive preference shares (80%) and equity share warrants (20%) in lieu of their eligible deposit balances. The warrants will be converted into equity shares at the time of the bank’s IPO, giving them a potential equity upside. “Our shareholders have committed capital of over Rs 30 billion through cash and warrants, which will be utilized to build a strong foundation for the bank,” the bank said in a press release.
For the convenience of all depositors, step-by-step instructions to provide access to their accounts will be detailed on the bank’s website – www.theunitybank.com.
