Maha govt will explore option of PMC bank merger: CM Devendra Fadnavis

Maharashtra government will explore possibility of merging crisis-hit Punjab and Maharashtra Co-operative Bank (PMC) with or bank, Chief Minister Devendra Fnavis has said. Assuaging concerns of depositors facing hardships due to restrictions on withdrawal of funds from scam-hit bank, chief minister said that money of account-holders would remain safe.

alleged scam to tune of Rs 4,355 crore scam at bank is attributed to loans given to realty firm HDIL, which were allegedly hidden from regulators' scrutiny, turning n-performing assets.

"Unfortunately, a revival pack for PMC bank is t in jurisdiction of state government, but with RBI. But, state government can facilitate merger of bank with or bank. I have alrey spoken to Prime Minister and Finance Minister on this issue. I will again peruse matter after polls," Fnavis said in an interaction with selct journalists as campaign for October 21 polls winds up at 6 pm on Saturday.

When asked about steps taken by BJP-Shiv Sena government in bank scam, Fnavis said accused have been arrested and ir assets seized.

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"Depending on provisions of Depositors Act state or Central government can auction assets (of accused) and pay depositors," he said, ding that process may take time.

Investigators have so far arrested five persons, including promoters of HDIL and top executives of bank, in connection with alleged scam.

depositors of bank have been holding protests demanding release of ir money, as RBI has imposed restrictions on withdrawal of funds from ir accounts.

After an alleged Rs 4,355 crore scam came to light at bank, apex bank initially capped withdrawals at Rs 1,000 in view of liquidity crisis, and later hiked it to Rs 40,000.

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Fnavis said bank deposits upto Rs one lakh are safe and insured.

"However, number of deposits (in bank) holding funds less than Rs one lakh is more. problem is with housing societies, religious institutions and individuals who have higher deposits. I will pursue matter after polling ends. Even though issue is under RBI jurisdiction, I will pursue with Centre to see that depositors money returned to m through whatever power at ir disposal under law," Fnavis said.

chief minister mitted that model code of conduct restricted government from playing a more "proactive" role in PMC bank case.

"Due to poll code in place re are some restrictions," he ded.

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