RBI governor Shaktikanta Das on Friday disclosed that three investors have submitted their offers for the reconstruction of the Punjab and Maharashtra Co-operative (PMC) Bank. Evaluation of these proposals are underway.

Last month, PMC Bank administrator A.K. Dixit informed in a letter to customers and stakeholders that three prospective investors were given time till February 1, 2021 for the submission of their final offers.

“I have been informed that three final offers have been received. I am given to understand that PMC Bank itself is evaluating the offers,” Das told reporters after announcing the monetary policy.

While he did not disclose the names, one of the interested party is understood to be Mumbai-based Centrum group which has joined hands with BharatP. The Liberty group is also reportedly keen on reconstructing the bank.

Das added that once the evaluation is done, the bank would approach the RBI.

In September 2019, the RBI had superseded the board of PMC Bank and placed it under various regulatory restrictions after the detection of certain financial irregularities and misreporting of loans.

Bad bank drill

The central bank is awaiting a formal proposal from the government on the proposed bad bank made in the Union Budget for 2021-22.

To a query at the post-policy press conference, Das said that while discussions on such an entity have taken place with the government earlier, the RBI is now waiting for a formal proposal from the Centre.

“When that comes, we will examine that and take a view. Till such a time we get a formal proposal, it’s not right to comment,” he said. Das added that the central bank has deepened its supervision and is making an assessment of the true state of non-performing assets in all banks.

On whether the RBI will go for an asset quality review (AQR), as suggested by Economic Survey 2020-21, Das said

the central bank’s supervision exercise is already doing what an AQR requires, indicating that such a review is not needed for now.