RBI wanted PMC chairman Waryam Singh to be sacked in 2018 for irregularities

The RBI Bank had reportedly recommended removal of the now scam-hit Punjab and Maharashtra Cooperative Bank (PMC) chairman Waryam Singh last year after it had found out his involvement in sanctioning loans to realty developer HDIL and related-entities without proper due diligence and much above the regulatory limits, a source has said.

Singh, however, continued to remain the chairman until recently, the person familiar with the development said.

The Reserve Bank of India (RBI) recommendation was sent to the Registrar of Cooperative Societies of Maharashtra which has administrative control over the coop banks in the state.

Neither the registrar nor Singh could be be contacted immediately for comments.

According to the source, of the Rs 8,880-crore loan book (as of September 19, 2019) that PMC had, more than Rs 6,500 crore or over 73 per cent of the assets are with the bankrupt HDIL group only, which has been an NPA account since the past two-three years and yet the bank kept on ...