Ministry of Finance sanctions amalgamation scheme of PMC Bank with Unity Bank

28 Jan 2022 , 11:11 AM

The Ministry of Finance, through a gazette notification issued on January 25, 2022 has sanctioned and notified the amalgamation scheme of Punjab & Maharashtra Co-operative Bank Limited (PMC Bank) with Unity Small Finance Bank Limited (Unity Bank), protecting it from liquidation and bringing relief to all stakeholders. PMC Bank’s approx. 110 branches and over 1,100 employees will operate as Unity Bank, providing security and stability in their employment along with offering uninterrupted service to clients.

Unity Bank will repay the full principal amount due to all depositors, as per the scheme of amalgamation. 96% of depositors, have deposits up to Rs 5 lakhs, will be paid upfront (subject to completion of the requirements as per DICGC rules). These depositors can choose to either withdraw or retain this amount with Unity Bank; or make additional deposits, and take advantage of the attractive interest rate up to 7%, being offered on savings accounts.

Additionally, Institutional depositors will receive preference shares (80%) and equity share warrants (20%) in lieu of their eligible deposit balances. The warrants will be converted into equity shares at the time of the Bank’s IPO, giving them a potential equity upside.

Keeping the depositors interest foremost, we commenced operations on 1st November, 2021, demonstrating a quick turnaround from RBI’s approval on 12th October 2021. Our shareholders have committed capital of over Rs 3,000 crores through cash and warrants, which will be utilized to build a strong foundation for the Bank, hire the right talent and bring best in class technology to deliver a seamless digital banking experience. We are committed to building new age banking products, catering to a diverse set of customers and businesses.

We thank the Reserve Bank of India, Ministry of Finance and the DICGC in their prompt support towards the amalgamation.

For the convenience of all depositors, step by step instructions to provide access to their accounts will be detailed on the Bank’s website — www.theunitybank.com.