PMC SCAM

Group 1
Arya A S
Jiranta Susan Varghese
Sabarinath M V

Punjab & Maharashtra Co-operative Bank Limited, also known as PMC

Bank, is a co-operative multi-state bank that started operations in 1983. It has
137 branches distributed over half a dozen Indian states, and there are almost
100 branches in Maharashtra. It is governed and registered under the
Cooperative Societies Act by the Reserve Bank of India. It was one of India's
largest cooperative banks, receiving a total revenue of 1,297 crore (US$ 188
million) and profits of 100 crore (US$ 14 million) in the 2019 financial year.

The Punjab and Maharashtra cooperative Bank Scam happened in

September 23 2019, which is the recent bank scam in India. It was among the
top five co-operative lenders in India, with a loan book of Rs8383 crore.
However, this exposure excludes the bank’s Rs6500 crore hidden loans to HDIL
as of march 2019, which is facing insolvency proceeding in the NCLT. What
emerged was a fraud committed by the PMC Bank CEO / MD and opened
21,000 fake accounts to disburse HDIL loans to an amount of Rs6,500 crore. In
other words PMC,s official exposure to HDIL constituted more than 73 % of the
banks total loans.

Our study and presentation will mainly focus on the following areas

 How the scam occurred

 How it affected the account holders and different stakeholders
 What are the impacts of the scam
 Who are the people involved in the scam
 Measures to be taken to avoid this kind of scams