Buzz is that PMC Bank is soon going to revive, courtesy, Unity Small Finance Bank that has come to rescue the debt-ridden Punjab Maharashtra Co-operative bank. Wondering, which bank is this? How will it revive PMC? Is Unity PMC merger really happening? And why you haven’t heard the name of the bank yet?
Well, here we tell you everything that you are eager to know about this small finance bank –
Unity Small Finance Bank Is a Joint Venture of Centrum Group and BharatPe
Unity Bank that is all set to take over PMC bank is a partnership venture between Gurugram based BharatPe (49% stake) and an integrated financial services conglomerate, Centrum Group (51% stake). While BharatPe is a fintech company founded in 2018, Centrum Group has more than two decades of experience in financial markets.
The Bank is relatively new – Just 2-months old
The unity bank started its operations on November 1, 2021 after it got its license from the Reserve Bank of India. Interestingly, the bank started in a record time, that is, within a month’s time from the day it got its license approved on October 12. The first branch is operational from Centrum group’s headquarters in Kalina, Mumbai.
Unity SFB is the 12th Small Finance Bank of India
On record, Unity Small Finance Bank is the 12th small finance bank of India. There are 11 other small finance bank that are operational and running in various parts of India. While, the regulatory requirement to start a small finance bank is Rs 200 crore capital, the Unity bank has paid a capital investment of Rs. 1,100 crores. Besides, it has a total asset of Rs. 2,400 crores.
RBI approved Unity Bank’s License so that it could take over PMC Bank
Unity Bank got it’s in-principal approval in June 2021 and then the license in October 2021 only on a condition that it would take over the crippled Punjab Maharashtra Co-operative bank, which is, under the RBI restrictions from more than 2-years now.
So, will Small Finance Unity Bank be able to give the Depositor’s money back?
Well, as soon as the merger happens, Unity bank will get take over everything – the asses, the liabilities and the deposits.
Under this arrangement the depositors in the initial phase will get their money upto Rs. 5 lakhs via Deposit Insurance and Credit Guarantee Corporation (DICGC) and the entire amount over a period of 10 years.
When is Unity Small Finance Bank and PMC Merger Happening?
Well, according to the regulations, this needs government approval and so once the centre sanctions the merger (with or without modifications), the Unity – PMC merger will happen and then the small finance will take over PMC completely.
This is all about Unity Small Finance Bank, the bank that will merge with PMC and then take over the Punjab Maharashtra Co-operative bank completely.
