Sources added Ludhiana-born British businessman Sanjeev Gupta’s Liberty House Group has additionally submitted an EoI to the RBI. The central financial institution has received 4 EoIs for PMC Bank. The identities of the opposite two contenders should not recognized but. On Friday, the RBI prolonged the restrictions on PMC financial institution until March 2021, by when it’s anticipated to check the proposals of the suitors.
If profitable, an acquisition will increase BharatPe’s lending enterprise. It goals to construct a Rs 5,000-crore mortgage e-book in two years. According to a supply, the over two-yr-previous Delhi-based startup will convey its tech capabilities on prime of the core monetary companies experience of the Mumbai-based Centrum and run it as a small finance financial institution.
“They want to co-run it as a digital-first bank. For BharatPe, this will reduce cost of capital. It has been wanting to lend on its own, instead of doing it only through its partner NBFC,” the supply mentioned. It is presently lending Rs 120-125 crore per thirty days to service provider companions, who use the platform to just accept digital funds.
The doc inviting EoIs had mentioned it will likely be open to new buyers eager to convert PMC Bank right into a small finance financial institution. Bindra confirmed the event, whereas BharatPe co-founder and CEO Ashneer Grover declined to remark. A spokesperson of Liberty House additionally declined to remark.
As of March 2020, PMC Bank had deposits of Rs 10,727 crore, whole advances of Rs 4,473 crore, and gross non-performing property (NPA) of Rs 3,519 crore. The share capital of the financial institution is Rs 293 crore. But the financial institution registered a web lack of Rs 6,835 crore throughout the monetary yr ended March 2020 with a unfavourable web price of Rs 5,850 crore.
PMC Bank bumped into hassle following the detection of economic irregularities and misreporting of loans given to actual property developer HDIL.
This has led to a number of authorized instances however what could possibly be engaging for a possible investor is that PMC Bank additionally has a community of round 137 branches, together with in prime areas in Mumbai, and a depositor base that features excessive web-price people.