PMC bank fraud began in 2008 -2015

 Breaking News
  • WHAT MAKES KCR SO CONFIDENT? “In a democracy, the people live in a world of comforting illusions. They can allow themselves to be deceived by false realities”. Sometimes, one needs a perspective, whether right or...
  • T-CONGRESS- THE SYMBOL OF UNMERITED INHERITANCES “Talk without the support of action means nothing.” More than, 15 days into the RTC strike which is assuming similarities of intensity of Telangana Movement, the Congress leadership appears to...
  • A detention Center nest Bangalore for illegal foreign nationals In semi-rural Nelamangala in Karnataka, around 40 kilometres from Bengaluru, a new detention centre for illegal foreign nationals  is set up. A medium-sized open space flanked on two sides by an...
  • CBI charge sheets Chidambaram in INX scam UPA chairman Sonia Gandhi coterie member and ex Finance Minister P Chidambaram, his son Karti and senior government officials have been finally charge sheeted by the CBI  in the INX Media...
  • Now cabs join RTC strike The travails of citizens of Hyderabad and other Telangana cities and towns continued to worsen with the private cabs joining  the 14 day RTC strike. The ongoing indefinite TSRTC strike...

PMC bank fraud began in 2008 -2015

PMC bank fraud began in 2008 -2015
September 30
10:23 2019

The RBI move on Punjab and Maharashtra Co-operative Bank has come timely to save depositors hard-earned savings. The bank’s exposure to bankrupt Housing Development and Infrastructure Limited (HDIL)pegged over Rs 6,500 crore or 73 percent of its total assets worth Rs 8,880 crore. Suspended managing director of the Mumbai-based co-operative bank, Joy Thomas, reportedly admitted in front of the Reserve Bank of India (RBI) about the bank’s exposure to HDIL. HDIL is now in the bankruptcy court after facing severe cash crunch following a string of failed projects in Mumbai. A group of executives at the bank including Joy Thomas allegedly helped in lending over Rs 6,500 crore to HDIL.

RBI PMC bank also failed to disclose the fact that loans awarded to HDIL had become NPA for the past two to three years. In a four-and-a-half page letter to the central bank, Suspended managing director Thomas gave details of how he and six key people including board members and chairman Waryam Singh sanctioned loans to HDIL group. For nine years, Waryam Singh was on the board of HDIL between 2006 and 2015 and held close to two percent stake in the company during the period. Before he exited the HDIL board, Singh had sold his entire stake in the company. Information regarding the fraud first came to light on September 23 when the RBI imposed certain restrictions on the bank for six months. Restrictions included banning lending and accepting fresh deposits and investments. The withdrawal limit for PMC account holders was limited to Rs 1,000 for six months but was later increased to Rs 10,000 citing panic among the bank’s customers.

About Author



Related Articles


No Comments Yet!

There are no comments at the moment, do you want to add one?

Write a comment

Write a Comment