AK Dixit, former General Manager, Union Bank of India, has been appointed as the new administrator of troubled Punjab and Maharashtra Cooperative (PMC) Bank.

“The present administrator, JB Bhoria, is stepping down on September 22due to health reasons,” said the Reserve Bank of India in a statement on Tuesday, adding that Dixit’s appointment is with effect from September 23.

One year since the bank was placed under RBI directions, the central bank said it is working to find a viable solution for the bank, but noted that there are several challenges.

“While the administrator of PMC bank and the RBI have been exploring various options for resolution of the bank, several factors such as huge losses incurred by the bank resulting in its entire net worth getting wiped out, steep erosion in depositscontinue to pose serious challenges in finding a workable plan for revival of the bank,” it said.

The bank has also been making efforts for recovery of non-performing assets, although the progress has been constrained because of the Covid-19 pandemic and legal complexities, it further said.

“Nevertheless, in the interest of the depositors, the PMC bank and the RBI are continuing to engage with the stakeholders to explore the possibility of finding a viable and workable solution for the resolution of the bank,” the central bank stressed.

PMC Bank was placed under the RBI directions under sub-section (1) of Section 35 A read with Section 56 of the Banking Regulation Act 1949 a year ago. The directive is valid till December 22 this year as of now.

Soon after, Bhoria was appointed as administrator of the bank. An advisory committee comprising senior bankers and chartered accountant was also appointed to assist the administrator.

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