RBI announces draft scheme for amalgamation of PMC Bank, Unity Small Finance Bank

The Reserve Bank of India on November 22 placed in public domain a draft scheme for amalgamation of Punjab and Maharashtra Cooperative (PMC) Bank as well as Unity Small Finance Bank (USFB).

The draft envisages takeover of the assets and liabilities of PMC Bank including deposits, by USFB in terms of the provisions of the scheme, giving a greater degree of protection for depositors.

“It may be seen that USFB is being set up with capital of about Rs 1,100 crore as against a regulatory requirement of Rs 200 crore for setting up of a small finance bank under the guidelines for on-tap licensing of small finance bank in private sector dated December 5, 2019, with provision for further infusion of capital at a future date after amalgamation,” the RBI said.

Equity warrants of Rs 1,900 crore, to be exercised anytime within a period of eight years, have been issued by Unity Small Finance Bank on November 1, 2021 to the promoters to bring further capital, according to the draft scheme.

The RBI has invited suggestions on the draft scheme till December 10. A final decision

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