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,