Case Summary
PMC Bank concealed its concentration of exposure to HDIL, causing a depositor crisis once regulators intervened.
Year
2019
Fraud Amount
โน6,500 Crore
Category
Banking Fraud
Sources
2 linked
PMC Bank was accused of hiding massive bad loans to the HDIL group by masking the exposure inside its core banking data.
When RBI intervened, depositors faced withdrawal restrictions and public panic spread around the safety of urban co-operative bank deposits.
The episode helped push wider debate on supervision, governance and deposit protection in India's co-operative banking sector.
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