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PCMC has deposits worth Rs984 cr with crisis-ridden YES Bank
PUNE The Pimpri Chinchwad Municipal Corporation (PCMC) has deposits worth Rs 984 crore with the crisis-ridden YES Bank, said municipal commissioner Shravan Hardikar.
PUNE The Pimpri Chinchwad Municipal Corporation (PCMC) has deposits worth Rs 984 crore with the crisis-ridden YES Bank, said municipal commissioner Shravan Hardikar.
Hardikar said, “We had earlier deposited Rs 3,000 crore with YES Bank, but gradually shifted it to other private banks. The high interest rate offered by the bank was the reason why it was preferred by the civic body.”
“The civic body has been depositing the amount with YES Bank since 2017 and the deposits were diverted from other banks to YES Bank as it offered higher interest. The interest rate of YES Bank was up to 8 per cent while the other banks offered 5 per cent. All due diligence was done and necessary procedures were followed,” Hardikar said.
The deposits of Rs 984 crore with the bank presently includes the civic body’s revenue collection from various sources like water tax, property tax, building permission fees and others, said Hardikar.
He said there was no cause for worry as the civic body has Rs 4,000 crore as reserves in other banks.
In the neighbouring Pune Municipal Corporation (PMC), the civic body has deposits worth Rs 105 crore with YES Bank, according to officials.
Ulka Kalaskar, chief accountant and finance officer of PMC, said, “We have Rs 105 crore deposits in YES Bank. A few months ago we withdrew Rs 366 crore from the bank after maturity. So, currently only 10 per cent of the Rs 1,600 crore FD (fixed deposit) of PMC is with YES Bank.”
“We will write to the Reserve Bank of India (RBI) seeking clarification as to how we can withdraw this amount too,” he added.
