Among the many depositors hit by the curbs placed on the beleaguered Punjab and Maharashtra Cooperative Bank (PMC) are some employees of the Reserve Bank of India (RBI).
The Reserve Bank Officers Cooperative Credit Society, which caters to the credit needs of RBI officers posted all over India, has a fixed deposit of Rs 105 crore in the bank on which the RBI has placed various curbs for six months following revelations of irregularities.
The RBI has said the depositors of the bank would not be allowed to withdraw more than Rs 1,000 from a savings account, current account, or any other deposit account. The bank can’t grant or renew loans or advances, nor can it invest without RBI's approval.
The directions will remain in force for six months from the close of business on September 23, the RBI said in a statement.
The annual report of Reserve Bank Officers Cooperative Credit Society for FY19 says that officers have a fixed deposit of Rs 105 crore in PMC Bank. The RBI Officer’s Cooperative Credit Society also has fixed deposits or short term deposits to the tune of Rs 478.64 crore in different cooperative banks. The society has a fixed deposit of Rs 100 crore with Bharat Co-operative Bank, Rs 85 crore with Thane Bharat Sahkari Bank, Rs 50 crore with Solapur Janata Sahkari Bank and Rs 85 crore with Apna Sahkari Bank. The also have fixed deposits in many other cooperative banks.
The RBI has superseded the board of the PMC Bank and appointed a retired chief general manager of the central bank, J B Bhoria, as an administrator for the troubled multi-state cooperative bank.
Bhoria has ascertained that the bank's liquidity profile is good enough and depositors should not panic. "Even the bank’s loans are secured against adequate assets," he said.
The bank has 19 per cent statutory liquidity ratio – deposits that are invested in government securities, and 3-4 per cent cash reserve ratio – share of deposits that are maintained in cash.
The multi-state-cooperative bank had gross non-performing assets (NPAs) of 3.76 per cent and net NPAs of 2.19 per cent at the end of March this year. It has 137 branches.
The RBI has also said the directions against the bank should not be construed as cancellation of the banking licence. “The bank will continue to undertake banking business with restrictions till further notice/instructions. The Reserve Bank may consider modifications of these directions depending upon circumstances,” it said.