1 min read.Updated: 28 Jan 2022, 06:36 AM ISTLivemint
Unity Bank offers interest rate of up to 7 per cent on savings accounts for those who wish to retain their money with the bank
Listen to this article
After the Finance Ministry on January 25, 2022, sanctioned and notified the amalgamation scheme of Punjab & Maharashtra Co-operative Bank Limited (PMC Bank) with Unity Small Finance Bank Limited (Unity Bank), the latter today said the merger will provide employees of PMC Bank "safety and security".
With this, PMC Bank has finally been saved from liquidation, bringing relief to all stakeholders, Unity Bank in a statement said today. PMC Bank’s around 110 branches and over 1,100 employees will operate under Unity Bank.
Unity Bank will repay the full principal amount due to all depositors, as per the scheme of amalgamation. Around 96 per cent of depositors have deposits up to ₹5 lakh, and will be paid upfront, (subject to completion of the requirements as per DICGC rules).
“These depositors can choose to either withdraw or retain this amount with Unity Bank; or make additional deposits, and take advantage of the attractive interest rate up to 7 per cent, being offered on savings accounts," Unity Bank said.
Additionally, institutional depositors will receive preference shares (80 per cent) and equity share warrants (20 per cent) in lieu of their eligible deposit balances. The warrants will be converted into equity shares at the time of the Bank’s IPO, giving them a potential equity upside, Unity Bank said.
“Our shareholders have committed capital of over ₹3,000 crores through cash and warrants, which will be utilised to build a strong foundation for the Bank, hire the right talent and bring best in class technology to deliver a seamless digital banking experience. We are committed to building new age banking products, catering to a diverse set of customers and businesses," the bank said.