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Crisis-hit PMC Bank used dummy accounts to escape RBI's attention

The bank misled auditors of the RBI by replacing legacy accounts of the company with dummy accounts, dating back to 2008

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RBI inspectors and auditors, short of time, did not feel the need to dig out old accounts until offsite inspections around 2017 raised their suspicion and they demanded old records

Anup Roy Subrata Panda Mumbai

8 min read Last Updated : Sep 30 2019 | 1:39 AM IST

Relations between Punjab and Maharashtra Co-operative Bank (PMC Bank) and Housing Development & Infrastructure (HDIL), which is facing bankruptcy proceedings, were highly symbiotic.

The bank’s sacked managing director (MD) and chief executive officer (CEO) Joy Thomas wrote a five-page confession letter to the Reserve Bank of India (RBI) on September 21, reviewed by Business Standard, where he described the relation of the HDIL’s promoter family Wadhawan with PMC Bank in detail, and how both sides helped each other out.

He admitted to concealing information from the board, auditors, and regulators, and replacing stressed accounts with dummy accounts. He also stated

Topics : HDIL Bank frauds cooperative banks

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