PMC Bank forensic audit under way, assets being valued: RBI governor

PMC Bank forensic audit under way, assets being valued: RBI governor

Ministry of Corporate Affairs looks to freeze IL&FS ex-directors’ properties
IL&FS case: MCA moves NCLT for appointment of new auditors
RBI auditors questioned in PMC Bank case

NEW DELHI: The Reserve Bank of India (RBI) is closely monitoring the situation at scam-hit Punjab & Maharashtra Co-operative Bank (PMC Bank) and a forensic audit is under way, said RBI governor Shaktikanta Das on Thursday, amid persisting uncertainty over the depositors’ funds. He added that an agency has been appointed to assess the realisable value of the bank’s assets for monetisation.

PMC Bank, among the top 10 urban co-operative banks in the country, was placed under an RBI administrator on September 23 for six months due to the massive under-reporting of dud loans. RBI had imposed withdrawal restrictions after it found alleged irregularities of Rs 4,355 crore due to the diversion of money to the infrastructure firm HDIL.

“We have had and are having discussions with the various investigative agencies,” Das said to the media after a meeting of the Financial Stability and Development Council.

He said that two things were happening. One, the forensic audit that had been ordered was underway, and second, an appointed agency was assessing the market value of the bank’s assets and they would also check if the assets were encumbered to any other entity. The assets are spread over various parts of Maharashtra and other states, he added. “Based on that, the Reserve Bank will take further decisions with regard to PMC Bank,” said Das.

About strengthening the regulatory mechanism, Das said there is a need for amendments to the law that governs multi-state co-operative societies.

Source- Times of India.