Punjab and Maharashtra Co-operative Bank

{{Short description|Co-operative Bank in India}}

{{Use Indian English|date=January 2020}}

{{Use dmy dates|date=January 2020}}

{{Recentism|date=January 2020}}

{{Infobox company

| name = Punjab and Maharashtra Co-operative Bank

| logo =

| type = Cooperative bank

| foundation = {{Start date and age|1984}}

| defunct = {{End date and age|df=yes|2022|1|25}}

| num_locations = 137 branch banks (2019)

| area_served = {{Unbulleted list|Maharashtra|Goa|Karnataka|Delhi|Gujarat|Madhya Pradesh}}

| location = Mumbai, India

| founder =

| industry = Banking
Financial services

| fate = Merged with Unity Small Finance Bank

| successor = Unity Small Finance Bank

| products =

| revenue =

| operating_income =

| net_income =

| assets =

| num_employees =

| homepage = {{url|pmcbank.com}}

}}

Punjab & Maharashtra Co-operative Bank Limited (PMC), was a multi-state co-operative bank that began operations in 1983. It had 137 branches spread over half a dozen states of India and nearly 100 branches were in Maharashtra. It was regulated by the Reserve Bank of India and registered under the Cooperative Societies Act.{{cite news |last1=Adhikari |first1=Anand |title=What you must know about Punjab and Maharashtra Co-operative Bank |url=https://www.businesstoday.in/sectors/banks/what-you-must-know-about-punjab-and-maharashtra-co-operative-bank/story/380952.html |work=Business Today |date=24 September 2019}}

It also has branches in Karnataka, Goa, Delhi, Madhya Pradesh and Gujarat. It was one of the profitable co-operative banks in India and had earned a total revenue of {{INRConvert|1297|c|0}} and profits of {{INRConvert|99.69|c|0}} in the financial year 2019.

On 23 September 2019, the RBI imposed operational and transactional restrictions on PMC Bank for six months. Due to this, the bank account holders were not allowed to withdraw more than ₹1,000 from their accounts during this period of restrictions.{{cite news |title=RBI puts PMC Bank under watch, customers can't withdraw more than {{INR|1,000}} for 6 months |url=https://www.indiatvnews.com/business/news-pmc-bank-under-rbi-restriction-punjab-and-maharashtra-bank-shut-down-pmc-bank-withdrawal-limit-551985 |work=India TV News |date=24 September 2019}}{{cite news |title=10 things to know about RBI's restrictions on PMC bank |url=https://www.newindianexpress.com/business/2019/sep/24/10-things-to-know-about-rbis-restrictions-on-pmc-bank-2038395.html |work=New Indian Express |date=24 September 2019}} On 26 September 2019, the restrictions have been eased and a total of {{INR|10,000}} could be withdrawn by customers.{{Cite web |url=https://www.indiatoday.in/business/story/rbi-clarifies-rs-10-000-withdrawal-limit-for-pmc-bank-not-final-1603745-2019-09-27 |title=RBI clarifies Rs 10,000 withdrawal limit for PMC Bank account holders not final |last=Shrivastava |first=Rahul |date=27 September 2019 |website=India Today |language=en|access-date=27 September 2019}} On 5 November, 2019 decided to increase the prescribed withdrawal limit to ₹ 50,000.{{Cite web |url=https://rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=48562 |title=Reserve Bank enhances withdrawal limit for depositors of Punjab and Maharashtra Cooperative Bank Ltd. to ₹ 50,000/- | date=5 November 2019 |website=Reserve Bank of India |language=en}}

The Reserve Bank of India (RBI) on 19 June 2020 doubled the withdrawal limit for Punjab and Maharashtra Cooperative Bank's depositors to Rs 100,000 from Rs 50,000 earlier.{{Cite web |url=https://economictimes.indiatimes.com/industry/banking/finance/banking/pmc-bank-crisis-rbi-doubles-withdrawal-limit-to-rs-1-lakh/videoshow/76469814.cms |title=PMC Bank crisis: RBI doubles withdrawal limit to Rs 1 lakh |date=19 June 2020 |website=The Economic Times|language=en}}

Joy Thomas(aka Junaid Khan), the MD of the bank, was suspended. He admitted the exposure of the bank to the troubled realty company HDIL and also stated that the company had been violating the RBI rules for 5–6 years now. Of the overall loan book of {{INR|8,300 crores}}, PMC bank loans to HDIL stood at {{INR|6,226 crore}}, about 73% of total loans of the bank.{{Cite news |url=https://economictimes.indiatimes.com/industry/banking/finance/banking/over-two-thirds-of-pmcs-loan-exposure-is-in-hdil-group/articleshow/71367179.cms |title=Over two-thirds of PMC's loan exposure is in HDIL group |work=The Economic Times|access-date=30 September 2019|last1=Rebello |first1=Joel }}

To solve this, HC appointed 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.{{cite news |last=Singh |first=Divyesh |url=https://www.indiatoday.in/business/story/how-joy-thomas-became-junaid-khan-to-loot-pmc-bank-1608854-2019-10-13 |title=How Joy Thomas became Junaid Khan to Loot PMC Bank |work=India Today |publisher=Living Media India Ltd |date=2019-10-13 |access-date=2020-10-24 }} 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 {{INR|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

Due to the restrictions and not providing any solution to the account holders and share holders of PMC Bank there is a loss of trust amongst the people of India towards the failed banking System, towards the Reserve Bank of India and towards the Government of India{{Cite news|url=https://economictimes.indiatimes.com/news/company/corporate-trends/pmc-bank-scam-hc-sets-up-panel-for-sale-of-hdil-assets/articleshow/73269363.cms|title = PMC Bank scam: HC sets up panel for sale of HDIL assets|newspaper = The Economic Times|last1 = Vyas|first1 = Maulik}}

As per an official circular from RBI on 25 January 2022, Punjab and Maharashtra Cooperative Bank merged with Unity Small Finance Bank Ltd. and all the branches of PMC Bank will function as branches of Unity Small Finance Bank Ltd.{{Cite news|url=https://economictimes.indiatimes.com/industry/banking/finance/banking/government-approves-pmc-bank-merger-with-unity-small-finance-bank/articleshow/89120373.cms|title = Government approves PMC Bank merger with Unity Small Finance Bank|newspaper = The Economic Times}}