The Reserve Bank of India has lifted the ban on new Tamilnad Mercantile Bank branches

The Reserve Bank of India has lifted the ban on new Tamilnad Mercantile Bank branches : RBI has lifted ban of three years on Tamilnad Mercantile Bank (TMB), which had prevented the banker from opening new branches.

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In what may turn out to be a boost for the growth plans of 101-year-old Tamilnad Mercantile Bank (TMB), The Reserve Bank of India (RBI) has lifted a three-year ban on the Thoothukudi-based bank opening new branches, effective October 21.The Bank’s shares were listed in the stock exchanges on September 15. It currently has 509 branches, with 106 in rural areas, 247 in semi-urban areas, 80 in urban areas, and 76 in metropolitan areas.
The RBI imposed the restriction on TMB in 2019 after the bank’s shareholders decided to raise the authorised share capital to Rs 500 crore. The central bank took issue with the bank’s failure to raise its subscribed capital to at least half of its authorised capital as required.