Merge PMC Bank with larger bank: Shiv Sena to RBI

Shiv Sena on Tuesday urged  Reserve Bank of India (RBI) to merge crisis-hit Punjab & Maharashtra Cooperative Bank with a larger public sector or private lender.

RBI appointed ministrator on PMC Bank, hit by an alleged Rs 4,355 crore scam, last month and imposed restrictions on withdrawal of funds.

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Depositors of bank have been protesting, seeking ir money back. In memorandum to RBI, Sena leers including Union minister Arvind Sawant and MPs Gajanan Kirtikar, Rahul Shewale and Anil Desai said Central bank should consider merging PMC Bank with a PSU or private bank such as Punjab National Bank, Bank of Baroda or ICICI Bank.

Real estate firm HDIL, which is PMC's Bank's main borrower, has quality assets which have been provided as collateral, Sena leers said in memorandum.

"We are of opinion that acquiring bank will find sufficient value in merger. We request you to accord this top priority to restore customer confidence in banking system," memorandum said. It cited past examples such as merger of Sangli Bank with ICICI.

"You may consider requesting state and central governments for recapitalisation of bank. RBI should also consider lifting direction to bank based on assurance/indemnity provided by big/bulk depositors so that bank can revive by undertaking its day to day operations. depositors can be asked to give assurance indemnity to effect that y would t withdraw for a period of three to five years," memorandum said.

party also asked RBI to strengn its inspection processes by deploying more skilled staff. insurance cover for deposits should be increased from Rs one lakh to Rs five lakh, party said.

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