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RBI approved CFSL to Take Over PMC Bank via SFB

Published on June 20, 2021
Current Context: The Reserve Bank of India (RBI) gave ‘in-principle’ approval to Centrum Financial Services Ltd (CFSL) to form a small finance bank (SFB), which will take over the beleaguered Punjab and Maharashtra Cooperative Bank (PMC Bank).
RBI approved CFSL to Take Over PMC Bank via SFB
  • With this approval, the Jaspal Bindra-led Centrum Capital (a holding entity for CFSL) and BharatPe will infuse Rs 1,800 crore into the small finance bank.
  • Both Centrum and BharatPe will hold 50%shares in SFB and the assets and liabilities of the multistate cooperative bank will be transferred to it.
  • To commence the operation, it will take 120 days.
  • The approval by RBI given to Centrum is in accordance with the offer made by Centrum through the expression of interest (EoI) to take over PMC Bank.
  • During the first year, Rs 900 crore will be infused by the partners to start the business operations and acquire PMC Bank and during the second year, equity funding of Rs 900 crore will take place.
  • Static Part: 
    • HQ of PMC Bank: Mumbai
    • HQ of BharatPe: Delhi
    • CEO of BharatPe: Ashneer Grover
    • HQ of CFSL: Mumbai
    • MD and CEO of CFSL: Ranjan Ghosh

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