Centrum gets RBI's in-principle nod to take over PMC Bank via SFB route

Approval given in accordance with the offer made by Centrum to take over the beleaguered Punjab and Maharashtra Cooperative Bank

The Reserve Bank of India (RBI) has given “in-principle” approval to Centrum Financial Services Ltd (CFSL) to set up a small finance bank (SFB), which will take over the beleaguered Punjab and Maharashtra Cooperative Bank (PMC Bank).

Jaspal Bindra-led Centrum Capital, the holding entity for CFSL, and its partner BharatPe, a payments system company, will infuse Rs 1,800 crore into the small finance bank.

It will get 120 days to commence operations. The amalgamation with PMC Bank is a separate process that would involve a notification of the scheme by the government, said Bindra, executive chairman, Centrum Capital.

Centrum Capital is a BSE-listed