The Silicon Review ^Asia

Maharashtra State Co-operative (MSC) bank recently wrote to Nirmala Sitharaman, Union Finance Minister in regards to the merger of PMC bank. The chairman of the MSC Bank Vidyadhar Anaskar stated that any decision concerning the scheme can happen only if the extent of fraud can be ascertained correctly through forensic audit. The bank merger idea is opposed because MSC Bank is an apex bank that work for cooperatives while compared to Maharashtra and Punjab bank because they function in multi-state. So the deal is slightly impossible because of the extended presence of the merger banks in other state.

The chairman furthermore stated that they have written to the FM, suggesting a branch merger, instead of a bank merger. When the RBI put PMC Bank under instruction in September 2019 for mismanagement in administration, almost Rs 11,000 crore of depositors’ money was stuck. The bank was found to have given over Rs 6,700 crore in loan through fraudulent means. Police have estimated that almost 4,700 crore was pegged by fraud at the PMC Bank. Anaskar stated that it is very important to first calculate the amount and extent of fraud before merger and this can only be done by the RBI’s forensic audit.