The Ministry of Finance, through a gazette notification issued on 25 January 2022 has sanctioned and notified the amalgamation scheme of Punjab & Maharashtra Co-operative Bank (PMC Bank) with Unity Small Finance Bank (Unity Bank), protecting it from liquidation and bringing relief to all stakeholders.

PMC Bank's approx. 110 branches and over 1,100 employees will operate as Unity Bank, providing security and stability in their employment along with offering uninterrupted service to clients.

Unity Bank will repay the full principal amount due to all depositors, as per the scheme of amalgamation. 96% of depositors have deposits up to Rs 5 lakhs and these depositors 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%, being offered on savings accounts.

Institutional depositors will receive preference shares (80%) and equity share warrants (20%) 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.

The banks' shareholders have committed capital of over Rs 3,000 crore through cash and warrants.

Unity Small Finance Bank is promoted by Centrum Financial Services (small business lending arm of the Centrum Group) with Resilient Innovations as a joint investor. In October 2021, the Reserve Bank of India (RBI) issued a small finance bank (SFB) license to the consortium of Centrum Financial Services and Resilient Innovations (BharatPe). The bank commenced operations in November 2021, with a capital infusion of approx. Rs 1,100 crore, total assets of about Rs 2400 crore and an active customer base of over 2 lakhs.