Mumbai: In an attempt to allay fears of depositors and customers of Punjab & Maharashtra Cooperative Bank (PMC), its suspended managing director Joy Thomas has claimed that the lender holds enough liquidity to meet all liabilities, and every penny of the public is secure. Asserting that all its loans are fully secured, Thomas stated that one large account – HDIL – was the sole reason for the present crisis that led to the regulatory action on Tuesday when Reserve Bank of India (RBI) superseded its management and placed it under an administrator for the next six months. Also Read – Commercial vehicle sales to remain subdued in current fiscal: Icra Despite repeated attempts HDIL could not be reached for comments. The regulator has also capped cash withdrawal at Rs 1,000 per customer during this period and banned the bank from any fresh lending during this period. Though Thomas did not disclose the exposure to HDIL, which he described as the largest and one of the oldest customers, he said all other accounts were safe and fully-secured. “All other loans are more than fully-secured and there is no need for any customer to panic,” Thomas told PTI in an interview Wednesday evening. Also Read – Ashok Leyland stock tanks over 5 pc as co plans to suspend production for up to 15 days “We have enough liquidity and back-up securities for all what we have lent. As a cooperative bank, we never do unsecured lending and our loan coverage ratio has always been 100-110 per cent,” Thomas said. He said the bank has a cash liquidity of around Rs 4,000 crore in the form of statutory liquidity ratio (SLR) and cash reserve ratio (CRR), while its liabilities are around Rs 11,600 crore. One of the reasons for the RBI action is the highly under-reported non-performing assets (NPAs), which according to sources are in high double-digits, while as per its FY19 balance sheet, it stood at a low 2.19 per cent, which though was more than double of 1.05 percent in FY18. Thomas admitted that the problem rose because of under-reporting of NPAs from the HDIL account. The slum redevelopment company, which has landed in cash crunch, has already gone to the bankruptcy now, has been delaying payments for the past few years. “The divergence was only on HDIL. There was a difference between what we were reporting and what the actual numbers were. There was a delay on repayment for the last two-three years and we have been under-reporting that,” Thomas admitted. He, however, declined to quantify its exposure to HDIL, saying the loan is fully-secured. Explaining that the problem is the delayed repayments by HDIL, he is sure of returning to normalcy sooner than later as the loan is fully-secured and the bank is in talks with HDIL for sell of its assets and recover the dues. “We have been working with HDIL for the past many months and we know they are in advanced stages of monetising their assets. That’s why we are saying that we will be out of the problem soon,” he said. Describing HDIL as an old customer and the largest and has been supporting the bank for years, Thomas said, “when we were a single unit bank, they supported us, they also supported us when we were facing problems. When nobody was depositing even a penny with us, they had put in Rs 13 lakh way back in 1988. “Nearly 40-50 percent of our turnover used to come from them only. We have earned a lot of profit from them…otherwise how can a young bank like ours would have grown and come among the top five,” he averred. Thomas said HDIL has been facing problems for the last three-four years after they had lost some of the projects, including the their key slum rehabilitation projects near the Mumbai airport and other bankers stopped lending to it. However, he exuded confidence that the bank will be out of the regulatory restrictions much ahead of the RBI’s six months period, say in two-three months. He said the focus is to safeguard the interest of small depositors as it is the festive season and they would want money. “We have already approached the RBI for increasing the withdrawal limit to Rs 15,000. We have enough liquidity to serve that demand,” Thomas said.
New Delhi: Mere registration of FIR is not a ground for disqualification for appointment to a public post, theDelhi High Court has held while restoring a person’s candidature to the post of Sub-Inspector in the Central Reserve Police Force. The observation by a bench of Justices S Muralidhar and Talwant Singh came while reinstating Vineet Kumar Sharma to the post of SI saying his candidature cannot be cancelled only on the ground that an FIR has been lodged against him. Also Read – More good air days in Delhi due to Centre’s steps: Javadekar”The proviso to the guideline contained in Ministry of Home Affairs’s notification dated February 1, 2012 makes it clear that the mere pendency of an FIR which is still at the stage of investigation, with no charge sheet having been filed and no charges having been framed by the court, will not be a bar to the candidature of an applicant. “That being the case, the respondents cannot possibly cancel the petitioner’s candidature only on the ground that an FIR is still at the stage of investigation, and the matter is pending,” the bench said. Also Read – Union min Hardeep Singh Puri, Delhi L-G lay foundation stones for various projects in DwarkaThe high court sets aside the order issued by CRPF cancelling Sharma’s candidature and the subsequent order of the DIG rejecting his representation and affirming his termination. “The respondents (CRPF) will now issue the consequential orders within four weeks restoring the petitioner as SI in the CRPF with effect from April 18, 2019 with all consequential benefits. However, it will be open to the respondents to clarify in such order that the appointment would be subject to the ultimate decision in FIR that has been registered against the petitioner,” the bench said. According to the plea, a notice was issued on April 22, 2017 by the Staff Selection Commission for recruitment of SIs in the Delhi Police, Central Armed Police Forces etc. The petitioner applied for the post of SI (General Duty) in the CRPF. He participated in the competitive examination held on July 5, 2017 and was declared successful in the examination. Sharma also successfully completed the Physical Endurance Test and Physical Standard Test and he was declared qualified on October 21, 2017. He also qualified in the online examination of Paper-II for which results were published on January 29, 2018. The petitioner successfully completed the medical examination for which the result was declared on April 6, 2018. He was issued a call letter by the SSC on October 5, 2018 and his name appeared in the final list of selected candidates published on October 1, 2018. Sharma was issued an appointment letter to the post of SI, CRPF on February 12, 2019 and was informed that in case he accepted the offer of appointment he should report to the DIG, Group Centre, CRPF in Pune on or before March 13, 2019. He joined the training for the post at Pune and submitted the documents and declaration in the prescribed format/attestation form. In this attestation form he specifically mentioned that his wife had lodged FIR against him and his whole family under the Dowry Prohibition Act. Later, the CRPF Commandant at Pune issued a letter that he could not be appointed in the CRPF on account of the pendency of the above FIR. The petitioner then preferred representations against the said order which were rejected by the DIG (Recruitment).