Janalaki alavaati aiypoyinattu undhi - another bank in crisis

[timmy]

In PMC Bank Crisis, Directors Of Firm Accused Of Loan Default Arrested

Rakesh Wadhawan and Sarang Wadhawan, senior executives at HDIL, were arrested by the Economic Offences Wing of the Mumbai Police on Thursday.

All India | Edited by Divyanshu Dutta Roy (with inputs from Agencies) | Updated: October 03, 2019 18:28 IST

 

 

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The Wadhawans also accused the bank's management of concealing non-performing assets.

 

MUMBAI: 

HIGHLIGHTS

1. Rakesh Wadhawan and Sarang Wadhawan senior executives at HDIL
2. They are accused of defaulting on loans worth nearly Rs. 6,500 crore
3. The RBI had imposed withdrawal restrictions on account holders

 

 

Two directors of the real estate firm HDIL that set off the massive crisis at the Punjab Maharashtra Co-operative (PMC) Bank by defaulting on loans worth nearly Rs. 6,500 crore have been arrested. Rakesh Wadhawan and Sarang Wadhawan, senior executives at Housing Development and Infrastructure Ltd (HDIL), were arrested by the Economic Offences Wing of the Mumbai Police on Thursday.

The Wadhawans were named in a police complaint that also accused the bank's management of concealing non-performing assets and disbursing loans to HDIL leading to a loss of at least Rs. 4,300 crore, in the latest banking fraud case to spook the country's depositors and investors.

According to the complaint, HDIL and its group companies were the beneficiaries of 44 loans crore or 73 per cent of PMC's total loan book size of Rs. 8,880 crore - a mammoth violation of regulations which forbid banks from handing out such a large proportion of cash to one sector let alone a single firm.

This was done through more than 21,000 fictitious accounts, the complaint said. "The actual financial position of the bank was camouflaged, and the bank deceptively reflected a rosy picture of its financial parameters," it said.

The complaint alleges that the PMC officials misled the RBI for over a decade from 2008 to August 2019. The fictitious loan accounts were not entered into the bank's core banking system - a factor key in the Rs. 14,000-crore fraud at Punjab National Bank that was uncovered in 2018.

Besides Rakesh Wadhawan and Sarang Wadhawan, the complaint named the bank's Chairman Waryam Singh and its Managing Director Joy Thomas, along with other bank officials, and accused them of criminal breach of trust, forgery and falsification of records.

The PMC case has sparked renewed concerns about the health of India's troubled banking sector, which has been rocked by a multi-billion dollar fraud at a state-run lender, the collapse of a major infrastructure lender, bad loan issues at state-run banks and a liquidity squeeze that has hit shadow lenders.

The Reserve Bank of India (RBI) last week moved to take charge of PMC, one of India's top five co-operative lenders with more than nine lakh depositors, and suspended Joy Thomas and the bank's board after uncovering lending irregularities.

Enforcing restrictions on the bank, the RBI also informed depositors that they can only withdraw a maximum of Rs. 10,000 from their PMC accounts over the next six months, triggering panic and anger among customers many of whom have all their savings in the bank.

In a letter written by Joy Thomas to the RBI that allegedly blew the lid off the scam, he says that he oversaw the fraud and hid details from the regulator for fear of reputational risks to the bank.

https://www.ndtv.com/india-news/pmc-bank-crisis-directors-of-firm-accused-of-rs-6-500-crore-loan-default-arrested-2111385?pfrom=home-topscroll

[xano917]

Two days only story no 

[timmy]

people got used to it i guess  mana dabbulu bank lonchi theesukovadaaniki enni restrictions peduthunnaru raa ayya. every 6 out of 10 ATM's either closed or no money, malli dantlo withdrawl limit okati  

[timmy]

RBI is sleeping while this is happening  under their nose 

[Kool_SRG]

Aallaki poyindemundi normal public kada suffer avuthondi...

[timmy]

4 minutes ago, Kool_SRG said:

Aallaki poyindemundi normal public kada suffer avuthondi...

so true 

 

[timmy]

ECONOMY

PMC Bank crisis: HDIL says loans taken after giving ‘adequate security’ cover

PTI

NEW DELHI, OCTOBER 01, 2019 12:45 IST

UPDATED: OCTOBER 01, 2019 12:45 IST

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Anxious depositors dealing with bank employees at Akruli branch of Punjab & Maharshtra Co-Operative Bank to withdraw money in Mumbai on Sept. 23, 2019, after initial RBI sanctions.   | Photo Credit: Arunangsu Roy Chowdhury

 

The Mumbai Police on Monday filed a case against the former bank management and promoters of HDIL in the Punjab and Maharashtra Cooperative (PMC) Bank case and said a special investigation team would be probing the case

Crisis-hit Housing Development and Infrastructure Ltd (HDIL) on Tuesday said that loans taken from banks including Punjab and Maharashtra Cooperative Bank were in normal course of business after providing adequate security cover and that it is ready to start discussion with the bank to protect the interest of depositors.

The Mumbai Police on Monday filed a case against the former bank management and promoters of HDIL in the Punjab and Maharashtra Cooperative (PMC) Bank case and said a special investigation team would be probing the case.

Replying to clarification sought by the stock exchanges, debt-laden HDIL said its books of accounts are audited and reflect true and fair picture of the company’s business.

“The company has over a period of time availed of banking facilities from various banks and institutions including PMC Bank in the normal course of business,” HDIL Vice Chairman and MD Sarang Wadhawan said in a regulatory filing.

He further said that “adequate security cover in favour of the banks including PMC Bank has been created” over the assets of the company for these facilities in due compliance with all banking regulations as per guidelines described by the RBI.

Mr. Wadhawan said the company is facing temporary cash flow issues due to a slowdown in the real estate sector.

As a result, he said, the company has been admitted under the Insolvency and Bankruptcy Code (IBC), but added that it was “actively attempting to resolve” the issue.

The now-suspended managing director of the crisis-hit PMC, Joy Thomas, reportedly admitted to the RBI that the bank’s actual exposure to the bankrupt HDIL is over ₹6,500 crore— four times the regulatory cap or a whopping 73% of its entire assets of ₹8,880 crore.

As per initial investigations, the bank’s losses since 2008 were ₹4,355.46 crore, police said.

“In relation to borrowings from PMC, we have already issued letters requesting an appointment with the administrator in charge of the bank to put forth the true and correct picture as also to discuss a strategy hereby the interest of all stakeholders and in particular PMC Bank and its Depositors is protected,” Mr. Wadhawan said.

He said the company would take all necessary steps and extend full cooperation to any and all agencies/ authorities during this period.

“We would endeavour to put in place plans to address interest and aspirations of all the stakeholders and extend full cooperation with the regulators and authorities during this time,” he added.

He also said the company was not aware of any action against HDIL and its promoters.

“HDIL has been made aware of certain regulatory actions against PMC Bank and its management. It is also learnt that certain action is being initiated against HDIL and its promoters. We are unaware of any action against HDIL and its promoter,” Mr. Wadhawan said.

https://www.thehindu.com/business/Economy/pmc-bank-crisis-hdil-says-loans-taken-after-giving-adequate-security-cover/article29564596.ece

[timmy]

The now-suspended managing director of the crisis-hit PMC, Joy Thomas, reportedly admitted to the RBI that the bank’s actual exposure to the bankrupt HDIL is over ₹6,500 crore— four times the regulatory cap or a whopping 73% of its entire assets of ₹8,880 crore.

As per initial investigations, the bank’s losses since 2008 were ₹4,355.46 crore, police said.

https://www.thehindu.com/business/Economy/pmc-bank-crisis-hdil-says-loans-taken-after-giving-adequate-security-cover/article29564596.ece

[Hitman]

50 minutes ago, timmy said:

RBI is sleeping while this is happening  under their nose 

it would be the same every country every financial institution in modern world. 

Banks has to lend the money (received from small people) to big account holders ( big industrialists / scamsters), for them will be difficult to maintain million accounts (small petty businesses) . majority of corporations (anywhere in the world) running with losses, due to heavy competition and not tough enough to withstand economy turbulence. 

Government has to bail out banks as we see in US, majority of the corporations go through Chapter 11 bankruptcy, which helps them to come back online. 

[aakathaai333]

there is no proper vigilance in banking and no authentic concurrent auditing. banks are miserably failing in bona fide regularization 

[futureofandhra]

2 minutes ago, aakathaai333 said:

there is no proper vigilance in banking and no authentic concurrent auditing. banks are miserably failing in bona fide regularization 

If this happens in congi gov u r reply will be different

[futureofandhra]

Neethi nijayithi symbol jaggu Ani confirm chesestaru

[aakathaai333]

2 minutes ago, futureofandhra said:

If this happens in congi gov u r reply will be different

if i start to say congi scams it would be like a menu card in hotel or some middle class family groceries list 

[Hydrockers]

Asalu aa bokkalo company ki etla icharo antha loan 

Sagam ville dobbi untaru

[hyperbole]

RBI gallu waste fellows, 3 months ago varaku they were showing some 90 crores profits anta, ante RBI banking health check system MG..inka enta pedda scams choodalsinvastado. aa auditor gadu etla audit chestunnadu, first vanni bokka lo vesi sue cheyyali.

idi mumbai’s high profile co-op bank,  veedduram enti ante RBI employees housing welfare association accounts and FDs kuda ee bank lo unnayi anta