Govt approves merger of PMC Bank with Unity Small Finance Bank

The centre has announced the merger of Punjab and Maharashtra Co-operative (PMC) Bank would operate as Unity Small Finance Bank (SFB) branches from 25 January. According to an official statement, the amalgamation will come into effect from the date of notification of the scheme, 25 January. All the branches of the PMC Bank will function as branches of Unity SFB Limited. According to a statement, Unity Small Finance Bank Limited (USFBL) is making necessary arrangements to implement the scheme. The scheme of amalgamation notified envisages the takeover of the assets and liabilities of PMC Bank, including deposits by the USFBL in terms of provision of the scheme. The central bank has extended the restrictions of the PMC Bank for three months till March-end 2022, as all necessary processes on the draft scheme will not complete. Unity SFB is the 12th small finance bank and opened its first branch in Mumbai with more than Rs 1,100 crore equity, over 200,000 customers and an asset base of over Rs 2,400 crore, which comes from the existing Micro, Small and Medium Enterprises (MSMEs) and microfinance institutions (MFI) credit business of the Centrum Group. Image Source Also read: Union Bank of India takes over NRDA's property after loan default