RBI appoints A. K. Dixit to oversee PMC Bank operations

The Reserve Bank of India (RBI) appointed former Union Bank of India general manager A.K. Dixit as the new administrator of Punjab and Maharashtra Cooperative (PMC) Bank as current one, J.B. Bhoria, stepped down citing health reasons.

“The present Administrator J.B. Bhoria is stepping down on 22 September 2020 due to health reasons. It has been decided to appoint A.K. Dixit, ex-general manager, Union Bank of India as the new administrator of the bank with effect from 23 September,” RBI said in a notification.

Detailing the reasons behind the sluggish turnaround of PMC Bank, the regulator said huge losses by the bank and steep erosion in deposits pose challenges to revival.

“While the administrator of PMC bank and the RBI have been exploring various options for resolution of the bank, several factors such as huge losses incurred by the bank resulting in its entire net worth getting wiped out, steep erosion in deposits, continue to pose serious challenges in finding a workable plan for revival of the bank,” it said.