The PMC rescue: what it means is that rbi insurance pays up to 5l for principal plus interest only till 31 March 2021. If you have more than that you get money in pieces over 10 years but no further interest. 
That is retail. All corporates who have money in it will get preference shares at 1% dividend per year with 80% of their money.
The remaining 20% will become equity warrants but to convert to equity they get to do it at the lower end of price band whenever bank goes ipo.
The remaining 20% will become equity warrants but to convert to equity they get to do it at the lower end of price band whenever bank goes ipo.
This is positive for the bank and for the acquirers. Most liabilities will be covered by the rbi insurance and share conversion of corporate deposits. Most loans are probably gone, but what loans remain will easily pay for the remaining liabilities over 10years.
Big depositors will hate this and go to court as they should. The court can sequester the current assets and force them to distribute any recoveries to big depositors and corporates in proportion, minus a management fee that reduces every year.
Importantly the bank gets some capital, becomes scheduled and can start business again.
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