Former Punjab and Maharashtra Co-operative Bank (PMC) Managing Director Joy Thomas has admitted to hoodwinking the auditors, bank’s board and the RBI for many years by concealing the default on loans to the tune of Rs. 6,500 crore taken by real estate firm Housing Development and Infrastructure Ltd (HDIL).
In a letter addressed to the Reserve Bank of India (RBI), Thomas has also explained the circumstances in which he took such decisions, besides taking full responsibility for his actions. He said that the bank is “still very optimistic on the repayment plan of the HDIL group”. He also presented a “roadmap” for recovering part of its dues and bringing the things back on the track.
According to Thomas, he decided to conceal the information as disclosing it would have resulted in loss of reputation for the bank as well as for HDIL, which gave the majority of business to the bank, and had maintained a good track record of servicing their loans since 1990s.