Punjab and Maharashtra Co-operative Bank soon to get Rs 2400 crore back; ED to transfer Rs 600 crore assets

In an important development, the Enforcement Directorate (ED) plans to release Housing Development and Infrastructure (HDIL)'s mortgaged assets with PMC Bank.

Representational Image. Source: PTI

Punjab and Maharashtra Co-operative bank may get back Rs 2400 crores back soon. Enforcement Directorate is ready to transfer Rs 600 crores assets back to PMC bank.

PMC may recover their large percent of principal amount of loan given to Housing Development and Infrastructure Limited (HDIL).

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A source close to development told Zee Business “Enforcement Directorate is ready to release Rs 600 crores of assets to PMC bank. For this senior officials of ED and banks have met also. ED officials suggested to bank officials to move competent court for releasing these assets”.

Another source further added that “Enforcement Directorate has done in past also where they have transferred attached assets to banks. Recently, happened in Vijay Mallya and Nirav Modi case”.

PMC administrator has Rs 1300 crores of assets in the form of collateral given by HDIL. Along with this bank has recovered around Rs 500 crores from creditors. In this case, almost Rs 2400 crores will be recovered soon in this case.

HDIL’s principal loan amount was around Rs 2540 crores.

In this February, Centrum Financial Services and BharatPe had submitted a proposal to run PMC Bank. Centrum Financial Services is a step-down subsidiary of listed entity Centrum Capital and provides credit to small and mid-sized companies ranging from ₹2 lakh to ₹2 crore. Resilient Innovations Pvt. Ltd, which operates BharatPe, will be an equal partner in the small finance bank.

Reserve Bank of India has approved given in principal in June 18. As per notification “This ‘in-principle’ approval has been accorded in specific pursuance to the Centrum Financial Services Ltd’s offer dated February 1, 2021, in response to the expression of interest notification dated November 3, 2020, published by the Punjab & Maharashtra Co-operative Bank Ltd., Mumbai,”.

In recent Monterey policy press conference, RBI deputy governor M Rajeshwar Rao told reporters “Centrum and its partner BharatPe have submitted their application for licence and is at an advanced stage of consideration. Once that final licence is approved, we will very shortly be proceeding ahead with the draft scheme and getting the requisite approvals,”.

In September, 2019, RBI took over the board of PMC after alleged of siphoning of money by HDIL promoters.

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