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business | IST

PMC Bank draft scheme of amalgamation: Depositors to get full amount over 10 years

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The draft scheme of amalgamation envisages the takeover of the assets and liabilities of PMC Bank, including deposits, by the Unity Small Finance Bank, thus giving a greater degree of protection for the depositors, the Reserve Bank of India said.

The Reserve Bank of India (RBI) on Monday came up with a draft scheme for the acquisition of Punjab and Maharashtra Cooperative (PMC) Bank by Delhi-based Unity Small Finance Bank (USFB).
The draft scheme of amalgamation envisages the takeover of the assets and liabilities of PMC Bank, including deposits, by the USFB, thus giving a greater degree of protection for the depositors, the Reserve Bank of India said.
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According to the scheme, the depositors at the bank will get their full amount back over a period of 10 years. USFB is being set up with a capital of about Rs 1,100 crore plus Rs 1,900 crore of equity warrants which can be converted over the next 8 years as against the regulatory requirement of Rs 200 crore for the setting up of such a bank, as per the guidelines for on-tap licensing.
As per the draft scheme, USFB also has the option to merge or close branches of PMC Bank.
Unity Small Finance Bank Ltd, a joint venture between Centrum Group and BharatPe, has commenced operations as a small finance bank with effect from November 1, 2021.
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