Maharashtra State Co-operative (MSC) Bank has sent a written communication to the Union Finance Minister Nirmala Sitharaman proposing amalgamation of branches of PMC Bank, in case of a takeover of the troubled bank, said sources.
MSC Bank Chairman Vidyadhar Anaskar has clarified that any progress on such a scheme can be initiated only once the exact extent of the fraud and the liabilities arising are determined through a forensic audit.
Opposing the bank merger, however, supporting the branch merger idea, he explained that MSC Bank is an apex lender for cooperatives and Punjab and Maharashtra Cooperative Bank’s multi-state presence makes it hard to implement such a deal.
“We have written to the Finance Minister, suggesting a branch merger and not a bank merger,” Anaskar told media persons.
He added that under the proposed scheme, apex lenders in Gujarat and other states where PMC has a presence will merge its branches in a bid to make it easier for the transaction to go through.
After the fraud came into light, more than Rs 11,000 crore of depositor money has been stuck after the Reserve Bank of India decided to put PMC Bank under instructions in September last year, and appointed an administrator on it after discovering mismanagement.