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Lack of ICA to hit PMC Bank's HDIL exposure

It is not clear as to where PMC Bank stands in the pecking order for recovery of its dues from HDIL, worth Rs 6,500 crore

PMC Bank
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Raghu Mohan Mumbai
PMC Bank’s woes might worsen as urban co-operative banks have not been made part of inter-creditor agreements (ICA). This raises a big question mark on where the bank stands in the queue of creditors that have an exposure to the realty firm, Housing Development Infrastructure (HDIL).

Under the Reserve Bank of India’s (RBI) June 7 guidelines on resolution of stressed assets, all bank groups except urban cooperative banks (UCBs) have to mandatorily sign the ICA. These include all scheduled commercial banks (excluding regional rural banks or RRBs), the National Bank for Agriculture and Rural Development, the National Housing Bank, Exim Bank,

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