Anurag Thakur calls the PMC crisis an 'eye-opener' for banking sector

Terming Punjab and Maharashtra Cooperative (PMC) Bank crisis as an "eye-opener", Minister of State for Finance Anurag Thakur on Monday said banking sector regulator RBI is looking into various aspects, including lapses on part of auditors. bank came under stress due to alleged financial irregularities forcing Reserve Bank of India (RBI) to impose restriction on Mumbai-based lender.

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Anurag Thakur terms PMC crisis 'eye-opener'

On sidelines of an event organised by Punjab National Bank in New Delhi, he said:

" role of regulators is very important but at same time, role of auditors, directors, bank officials is equally important. And what y have been doing for last so many years and people responsible for it, I think regulator (RBI) is looking into this. At this st, I would t like to say much to that. But kind of media reports and articles have come, some of m are very shocking. I think it is very very important, an eye opener for banking sector... such instances should t take place at outset. It also raises a question mark on role of various people wher it is regulator, auditors, directors and or officials."

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Asked if Ministry of Corporate Affairs is also looking into matter, Thakur said government will look into all areas where ever required because eventually, it's going to impact common man. RBI last month put a slew of restrictions on Mumbai-based lender, creating panic among thousands of depositors. Major restrictions include capping withdrawal at Rs 10,000 per customer during six-month period and banning bank from extending new loans. lender has around Rs 11,000 crore of public deposits.

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Thakur inaugurates herit museum showcasing PNB's journey

With regards to resolution of b loans, minister said National Company Law Tribunal should be last resort. bank should explore or options for resolution which is good for bankers to recover more amount and also for various stakeholders. He also said that banking sector will play a crucial role in achieving aspiration of USD 5 trillion ecomy by 2024-25. Praising Punjab National Bank (PNB) for standing tall during tough times, Thakur said, credit should go to all stakeholders especially officials of bank. He inaugurated herit museum showcasing bank's journey of 125 years from its humble beginning in Lahore to its new corporate office. museum has various interesting collections capturing various phases of growth.

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