The Ministry of Finance (Department of Financial Services) has officially appointed Punjab National Bank (PNB) as the official liquidator for the winding-up proceedings of 32 defunct banking companies, as per a notification dated June 3, 2025.
The appointment is made under the powers conferred by Section 39 of the Banking Regulation Act, 1949, and relates specifically to winding-up proceedings pending before the Calcutta High Court. This development is expected to accelerate the resolution of legacy banking cases, some of which have remained inactive for decades.
List of Defunct Banks Under Liquidation
The banks covered under this notification include historic names such as:
- Associated Bank of Tripura
- Bank of Calcutta Ltd.
- Bengal Bank Ltd.
- Calcutta National Bank Ltd.
- Nath Bank Ltd.
- Sonar Bangla Bank Ltd.
- Tripura Modern Bank Ltd.
(Full list includes 32 entities-see official notification for all names.)
Background and Significance
Most of these banks ceased operations several decades ago due to insolvency, mismanagement, or regulatory violations. However, the lack of a designated liquidator delayed settlement of their outstanding claims and asset distribution. The appointment of PNB-India's second-largest public sector bank-marks a major administrative step towards final closure of these winding-up cases.
The notification, issued under S.O. 2476(E), was published in the Gazette of India by Manasa Gangotri Kata, Director, Financial Services, and is in continuation of efforts to streamline financial housekeeping and bring transparency to India's banking legacy.
Implications for Stakeholders
The move is particularly important for:
- Former employees awaiting dues
- Creditors seeking recovery of funds
- Legal and regulatory authorities pursuing compliance closure
With PNB's appointment, the liquidation process will now follow a structured legal and financial route, adhering to Reserve Bank of India (RBI) guidelines and court directives.
Conclusion
This notification reflects the government's commitment to cleaning up historical financial clutter and improving institutional efficiency in the Indian banking sector. Stakeholders involved with the listed banks can expect a more coordinated and transparent resolution process going forward.
Official copy of the notification is mentioned below
CAclubindia
