PMC Bank Ltd.
Amalgamation with
Unity SFB Ltd. Scheme, 2022

The settlement process is as per the Govt. of India-sanctioned Punjab and Maharashtra Co-operative Bank Ltd. (Amalgamation with Unity Small Finance Bank Ltd.) Scheme 2022. Of your eligible balance (that includes interest accrued till 31st Mar’2021), you are eligible for:

You will get up to Rs. 5 lakhs (not applicable for Government Institutions and Banks), subject to claim approval by DICGC

1. From the appointed date, i.e. 25th January 2022, 80% of the eligible amount shall be converted into Perpetual Non Cumulative Preference Shares (PNCPS) of Unity bank with dividend of 1% per annum, payable annually
2. At the end of the 10th year from the appointed date, Unity Bank will use Net Cash Recoveries (net of expenses related to such recoveries) from assets pertaining to Housing Development and Infrastructure Limited Group in excess of the principal amount of advances to Housing Development and Infrastructure Limited Group outstanding as on March 31, 2021 to buyback Perpetual Non-Cumulative Preference Shares at face value on a pro rata basis.
3. From the end of 21st year, Unity Bank will buy-back the outstanding principal of the PNCPS, at the rate of at least 1% per annum, provided the following conditions are satisfied:

4. All restructured liabilities pertaining to the erstwhile PMC Bank including those towards Deposit Insurance and Credit Guarantee Corporation under the Scheme of amalgamation are fully discharged;

   • Capital adequacy ratio of Unity bank is at least three hundred basis points higher than the regulatory minimum capital-to-risk weighted assets ratio applicable at that point of time;
   • From the appointed date, i.e. 25th January 2022, 80% of the eligible amount shall be converted into Perpetual Non Cumulative Preference Shares (PNCPS) of Unity bank with dividend of 1% per annum, payable annually
   • At the end of the 10th year from the appointed date, Unity Bank will use Net Cash Recoveries (net of expenses related to such recoveries) from assets pertaining to Housing Development and Infrastructure Limited Group in excess of the principal amount of advances to Housing Development and Infrastructure Limited Group outstanding as on March 31, 2021 to buyback Perpetual Non-Cumulative Preference Shares at face value on a pro rata basis.
   • From the end of 21st year, Unity Bank will buy-back the outstanding principal of the PNCPS, at the rate of at least 1% per annum, provided the following conditions are satisfied:
   • All restructured liabilities pertaining to the erstwhile PMC Bank including those towards Deposit Insurance and Credit Guarantee Corporation under the Scheme of amalgamation are fully discharged;
   • Capital adequacy ratio of Unity bank is at least three hundred basis points higher than the regulatory minimum capital-to-risk weighted assets ratio applicable at that point of time;
   • Net non-performing assets of Unity bank are at least two hundred basis points lower than the prescribed threshold for Prompt Corrective Action by Reserve Bank at that point of time;
   • Minimum Net Cash Recovery of the principal amount of advances to Housing Development and Infrastructure Limited Group as on March 31, 2021 from assets pertaining to Housing Development and Infrastructure Limited Group is more than 70% of the principal amount of advances;
   • The buyback of the Perpetual Non-Cumulative Preference Shares shall be capped at 10% of the yearly net profit of Unity Bank, for the previous year
   • The remaining 20% amount of the institutional deposits shall be converted into equity warrants of Unity bank at a price of ₹ 1 per warrant and these equity warrants will further be converted into equity shares of Unity Bank at the time of the Initial Public Offer when Unity Bank goes for public issue. The price for such conversion will be determined at the lower band of the Initial Public Offer price.
5. For getting your queries resolved or to start the process of claim/ settlement, please get in touch with your PMC Relationship Manager (they are now employees of Unity Bank) or visit the nearest Unity Bank Branch (former PMC branch). Please carry valid KYC documents for completing your KYC when visiting the branch, in case your earlier KYC is not valid/ has expired. The list of valid KYC documents plus the complete list of branches/ offices of Unity Bank is available on our website.