Tag: punjab

Punjab a preferred investment destination for companies, says industry minister, BFSI News, ET BFSI

Personal Finance

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Chandigarh, Punjab has become a preferred investment destination for the global firms in the last few years because of strong ecosystem and business friendly policies, state industries minister Gurkirat Singh Kotli said on Sunday. In the last four-and-a-half years, investors from across the globe as well as those from different regions in the country have shown their confidence in Punjab, which has resulted in securing investments worth Rs 99,000 crore in various sectors, he further said.

The sectors include bicycle, agri and food processing, logistics, pharmaceuticals, chemicals, textiles, alloy and steel and engineering.

“The investments are coming into the state from companies from diverse countries including the US, the UK, the UAE, Denmark, Germany, France, Spain, Italy, Japan, South Korea, New Zealand and Singapore,” said Kotli.

He said Punjab has not only witnessed global firms investing in the state for the first time but also the existing players have expressed their satisfaction and enthusiasm by expanding their presence and operations in the state.

“The investors’ confidence in the growth story of Punjab, even in the times of the COVID-19 crisis, is a testimony to the state’s strong infrastructural and policy framework,” said the minister in an official statement.

Pertinently, the state government has made consistent efforts in the last four and a half years to develop an ecosystem where both the domestic and global businesses can thrive competitively.

Ahead of a two-day Progressive Punjab Investors Summit-2021 on October 26 and 27, Punjab Chief Minister Charanjit Singh Channi on Saturday met a delegation of German companies operating in the state.

The chief minister said the state actively promotes business, trade and infrastructure development in partnership with the industry.

Channi said the investments of over Rs 99,000 crore reflects the enormous confidence and trust in the conducive and sustainable ecosystem in the state to boost industrial activity and create humongous entrepreneurial opportunities and jobs for the state’s youth.

He impressed upon the industry from the length and breadth of the world to choose Punjab as a progressive partner being the most preferred destination to realise their dreams.

Channi further said that these consultations with industry would go a long way in improving the delivery of governance thus ensuring ease of doing business in the state. PTI CHS VSD MR MR



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RBI extends restrictions on PMC Bank till Dec 31, BFSI News, ET BFSI

Banking & Finance

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The Reserve Bank of India (RBI) has extended the timeline for restrictions on Punjab and Maharashtra Cooperative (PMC) Bank till December 31, 2021 after taking into account the prospective time required for the restructuring process of the bank.

The decision came a week after the RBI granted an “in principle” approval to Centrum Financial Services for setting up a small finance bank (SFB), thereby clearing the decks for the takeover of th crisis-hit PMC Bank by Centrum and BharatPe as equal partners.

In response to the Expression of Interest (EOI) dated November 3, 2020 floated by PMC Bank for its reconstruction, certain proposals were received. After careful consideration, the proposal from Centrum Financial Services Ltd (CFSL) along with Resilient Innovation Pvt Ltd (BharatPe) has been found to be prima facie feasible, said an RBI statement.

It added that in specific pursuance to their offer dated February 1, 2021 in response to the EOI, the central bank has granted “in-principle” approval, valid for 120 days, to CFSL to set up a small finance bank under the general guidelines for ‘on tap’ Licensing of Small Finance Banks in the Private Sector dated December 5, 2019.

“Taking into account the time required for the completion of various activities involved in the process, it is considered necessary to extend the aforesaid directions,” it said.

“Accordingly, it is hereby notified for the information of the public that the validity of the aforesaid directive dated September 23, 2019, as modified from time to time, has been extended for a further period from July 1, 2021 to December 31, 2021, subject to review,” it added.

PMC Bank, a Mumbai-headquartered multi-state urban cooperative bank, was placed under the All-Inclusive Directions under Sub-section (1) of Section 35-A read with Section 56 of the Banking Regulation Act, 1949 with effect from close of business on September 23, 2019, in the interest of depositor protection. The directions were last extended vide directive dated March 26, 2021 up to June 30, 2021.



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NCUI, BFSI News, ET BFSI

Banking & Finance

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Cooperative body NCUI has welcomed the RBI’s in-principal nod to Centrum Financial Services for the takeover of PMC Bank, but said all depositors should get back their deposits without any condition. Paving the way for the takeover of crisis-ridden Punjab and Maharashtra Cooperative Bank (PMC), the Reserve Bank of India on Friday granted in-principle approval to the Centrum Financial Services to set up a small finance bank.

Centrum Financial Services was one of the applicants for the takeover of the PMC Bank.

Reacting to RBI’s in principle approval to Centrum Financial Services, NCUI President Dileep Sanghani in a statement said, “This is indeed welcome. However, it should be ensured that all the depositors should get back their deposits without any conditionality.”

However, he said it would have been better if all the big UCBs should have mobilised the funds together to revive the bank.

National Federation of Urban Cooperative Banks and Credit Societies Ltd (NAFCUB) President Jyotindra Mehta said, “This is in accordance with the wishes of the sector, and the depositors. This will no doubt boost the image of the sector. However, the culprits who committed the fraud in the bank must be punished.”

GH Amin, Chairman, Cooperative Bank of India, and Chairman, Gujarat State Cooperative Union welcomed the move. “It is a good gesture, of taking over a crisis-hit bank by a small finance bank, and reviving it. The depositors will get an assurance of getting back their deposits.”

National Federation of State Co-operative Banks Ltd (NAFSCOB) MD Bhima Subrahmanyam said, “The move is indeed appreciable. However, all the depositors should get back their deposits without any conditionality”.

Large urban cooperative banks should have taken over PMC Bank and started a small finance bank, as the PMC had an excellent image before the fraud happened, he added. Subrahmanyam is also President International Cooperative Banking Association.

On Friday, the RBI gave ”in-principle” approval to the Centrum Financial Services Limited’s offer of February 1, 2021, for the takeover of PMC Bank Ltd.

The PMC Bank had invited Expression of Interest (EoI) from eligible investors for investment/ equity participation for its reconstruction and had received four proposals.

In September 2019, the RBI had superseded the board of PMC and placed it under regulatory restrictions, including cap on withdrawals by its customers, after detection of certain financial irregularities, hiding and mis-reporting of loans given to real estate developer HDIL.

The restrictions have been extended several times since then. PMC’s exposure to HDIL was over Rs 6,500 crore or 73 per cent of its total loan book size of Rs 8,880 crore as of September 19, 2019.

Initially, the RBI had allowed depositors to withdraw Rs 1,000 which was later raised to Rs 1 lakh per account to mitigate their difficulties.

In June 2020, the RBI had extended the regulatory restrictions on the cooperative bank by another six months till December 22, 2020.

As of March 31, 2020, PMC Bank”s total deposits stood at Rs 10,727.12 crore and total advances at Rs 4,472.78 crore. Gross non-performance assets of the bank stood at Rs 3,518.89 crore at end-March, 2020.



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