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Supreme Court agrees to grant urgent hearing in PMC Bank case

Supreme Court agrees to grant urgent hearing in PMC Bank case

Supreme Court agrees to grant urgent hearing in PMC Bank case
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By CNBC-TV18 Oct 16, 2019 11:45:13 AM IST (Updated)

The Supreme Court on Wednesday agreed to grant an urgent hearing in the PMC Bank case. A public interest litigation (PIL) filed by Bijon Mishra for an urgent hearing in the case seeks full protection of savings of over 15 lakh depositors and 100 percent insurance cover.

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The PIL will be heard by the apex court on October 18.
The development comes even as panic escalates among PMC Bank account holders due to the uncertainties over their deposits, which have been stuck after the Reserve Bank of India put a restriction on the lender for six months owing to massive understatement of NPAs.
The central bank put PMC Bank under restrictions last month, meaning the lender cannot give fresh loans and accept fresh deposits during the stated period. Withdrawals have been capped at Rs 40,000 per account.
At the centre of the fraud is HDIL, which is believed to have taken a substantial amount of loan from the bank.
After the case came to light, Joy Thomas, PMC Bank's MD, who now stands suspended, had reportedly admitted to the Reserve Bank of India (RBI) that the bank's exposure to the bankrupt HDIL is over Rs 6,500 crore — four times the regulatory cap or a whopping 73 percent of its entire assets of Rs 8,880 crore.
HDIL directors and the PMC chairman were arrested after the fraud unfolded.
The crisis at the bank has now started to take lives as two of the PMC Bank account holders — one was a former Jet Airways employee — died of stroke in the last 24 hours.
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