Banking

PMC Bank Crisis Claims 8th Victim in a 74-Year-Old Thane Man

The 74-year-old man needed money for treatment for a lung infection but could not withdraw the 26 lakhs stuck in his accounts at PMC Bank.

Mumbai: Another depositor of the troubled cooperative lender PMC Bank has died allegedly due to an inability to take care of his medical bills, his family members said on Monday.

The 74-year-old Andrew Lobo died at his home at Kasheli in the neighbouring Thane late Thursday evening, his grandnephew Chris told PTI.

Lobo is the eighth PMC depositor to have reportedly died after the bank was placed under an RBI administrator with withdrawal caps. The RBI suspended the bank management on September 23 and since then there has been a case of suicide of a depositor at the bank as well.

Chris said Lobo had over Rs 26 lakh in his accounts with the bank and used to depend on the interest for his day-to-day needs.

“Two months ago, he developed a lung infection which needed regular medicines and visits to the doctor. His money was stuck in the bank, and we also have our accounts with PMC, due to which none of us could take care of his medical requirements,” Chris said.

Also read: After Depositors, the PMC Scandal’s Second Potential Victim is Trust in India’s Financial System

Lobo had a business of fabrication in suburban Mulund till he discontinued it a few years ago, the grand nephew said, adding his accounts were with the Mulund branch.

The RBI has put an administrator on the bank and claims that 77% of the 16 lakh depositors can fully withdraw their money with the limits having being raised to Rs 40,000 per account.

The city police have pegged the overall size of the financial scam at the bank at Rs 4,355 crore and have arrested five people in connection with the case.

According to investigators, the bank management colluded with realty developer HDIL in such a way that loans were made to the company despite non-payments through specially created dummy accounts. These transactions were also allegedly hidden from the central bank’s audit.

As a result, over 6,500 crore of the bank’s overall advances of Rs 9,000 crore have turned sour.

Join The Discussion