PMC Bank reported HDIL loan of only Rs 420 crore

PMC Bank reported HDIL loan of only Rs 420 crore
01/01/2020 , by , in News/Views

The beleaguered Punjab and Maharashtra Co-operative (PMC) Bank had allegedly misreported the unpaid loans of real estate firm Housing Development Infrastructure Limited (HDIL) to the Reserve Bank of India (RBI), the probe by the Enforcement Directorate (ED) has revealed.

According to the ED, the bank reported merely Rs 420.03 crore to the RBI when the actual outstanding loans stood at Rs 6,117.93 crore till August 2019. In the process, the bank hid the loan of Rs 5,697crore to avoid scrutiny and restrictions on its operations that could lead to its collapse. Moreover, the collateral securities kept by HDIL were purportedly never sold for the recovery of loans.

Of the reported loans, the bank told the RBI that the principal amount owed by HDIL was Rs 400.08 crore and the interest amount was Rs 1.95 crore. However, the non-reported outstanding loan was Rs 5,697.90 crore, with Rs 2,140.84 crore as the principal amount and Rs 3,557.06 crore as the interest.

“Thus, the aggregate loan outstanding against HDIL group stood at Rs 6,117.93 crore, with Rs 2540.92 crore as the principal amount and Rs 3,577.01 crore as the interest,” sources in the ED said.

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