Punjab and Maharashtra Co-operative Bank

Punjab & Maharashtra Co-operative Bank Limited (PMC), is a multi-stateco-operative bankthat began operations in 1983. It has 137 branches spread over half a dozen states ofIndiaand nearly 100 branches are inMaharashtra. It is regulated by theReserve Bank of Indiaand registered under the Cooperative Societies Act.It also has branches inKarnataka,Goa,Delhi,Madhya PradeshandGujarat. It is one of the profitable co-operative banks inIndiaand had earned a total revenue of₹1,297 crore(US$182million) and profits of₹99.69 crore(US$14million) in the financial year 2019. On 23 September 2019, theRBIimposed operational restrictions on PMC Bank for six months. Due to this, the bank account holders are not allowed to withdraw more than ₹1,000 from their accounts during this period of restrictions.[2][3]On 26 September the restrictions have been eased and a total of Rs 10000 could be withdrawn by customers.[4]Joy Thomas, the MD of the bank, was suspended. He admitted the exposure of the bank to the troubled realty companyHDILand also stated that the company had been violating theRBIrules for 5-6 years now. Of the overall loan book of 8300 crores, PMC bank loans to HDIL stood at Rs.6226 crore, about 73% of total loans of the bank. To solve this, HC appoints the three-member committee to oversee the sale of assets of Housing Development Infrastructure (HDIL) to pay the depositors of Punjab and Maharashtra Co-operative Bank (PMC Bank). HDIL, its promoters Rakesh and Sarang Wadhawan, and a few former officials are accused of committing a fraud on PMC Bank. Public interest litigation filed in the high court, seeking the setting up of a committee to speed up the auction of HDIL's assets to pay depositors, has claimed that the realty firm owed ?4,635 crore to the bank. The court said if the proceeds from the sale were insufficient to pay the dues, the committee would identify and dispose of the properties of other companies owned or promoted by the Wadhawans which were mortgaged with the PMC Bank, but with paripassu charge of other financial institutions.