PMC Bank Scam: Former MD Joy Thomas arrested day after HDIL promoters taken into custody

By: |
Updated: Oct 04, 2019 7:09 PM

The Economic Offences Wing (EOW) has arrested Punjab and Maharashtra Cooperative Bank’s Former MD Joy Thomas.

PMC Bank, Punjab & Maharashtra Cooperative Bank, HDIL, RBI, joy thomas arrestedPMC Bank Scam

The Economic Offences Wing (EOW) has arrested Punjab and Maharashtra Cooperative Bank’s Former MD Joy Thomas. The arrest of the former MD took place a day after EOW arrested HDIL promoters Sarang Wadhawan and Rakesh Kumar Wadhawan, allegedly after the duo refused to cooperate with the enforcement agency when they were called in for questioning. Yesterday, the EOW also attached the property of HDIL worth Rs 3,500 crores. Speaking from the bank’s side a few days back, the Punjab and Maharashtra Cooperative bank’s MD Joy Thomas told ET Now in an interview that the RBI has taken the action due to an increase in the bank’s NPA. He had accepted that the bank was not fulfilling a few RBI norms, against which the central bank took steps.

However, he then assured that the bank’s advances are securitised and only liquidity is the problem and that the staff is confident to address this in the short term. He also said that the depositors and the well-wishers who had trust on the bank, their trust is shaken but that is normal.

Also Read: PMC bank issue fallout: HDIL promoters arrested after dubious loans discovered

RBI Governor Shaktikanta Das said during the press conference after Monetary Policy Review Meet that the RBI is looking at the PMC Bank case very closely and has started to work in this direction as soon as it came into RBI’s light. He added that right from the starting of this case, the RBI is swiftly working on it and will take the necessary action as the case proceeds.

Also Read: PMC Bank’s customers can’t withdraw more than Rs 1,000; RBI gives directions

Meanwhile, the central bank has raised the withdrawal limit to Rs 25,000 from the initial restriction of just Rs 1,000, which was later increased to Rs 10,000.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1ESAF SFB mops up Rs 162 crore via pref allotment of shares
2SC issues guidelines for cheque bounce cases, asks govt to amend laws
3MFIs better prepared to deal with disruptions due to rising COVID-19 cases: MFIN CEO Alok Misra