Government approves PMC Bank merger with Unity Small Finance Bank

Notifying the scheme for amalgamation, the Centre today announced that the branches of Punjab and Maharashtra Co-operative Bank will operate as Unity Small Finance Bank branches from January 25, 2022.
"The amalgamation will come into force with effect from the date of the notification of the scheme i.e. January 25, 2022. All the branches of the PMC Bank will function as branches of Unity Small Finance Bank Ltd. with effect from this date," read the circular in the official site of the Reserve Bank of India.

"USFBL is making necessary arrangements to implement the provisions of the scheme. The Scheme of amalgamation notified today envisages takeover of the assets and liabilities of PMC Bank, including deposits, by the USFBL in terms of the provisions of the scheme. " further read the readout.

The central bank in December extended the restrictions on Punjab and Maharashtra Cooperative (PMC) Bank for another three months till the end of March 2022, as all necessary process on the draft scheme for the takeover was not complete.

Unity SFB is the 12th small finance bank and opened its first branch in Mumbai on 1 November 2021 with over Rs 1,100 crore of equity capital, over 200,000 customers and an asset base of over Rs 2,400 crore which comes from the existing MSME and MFI credit business of the Centrum Group.