Tamilnad Mercantile Bank says RBI lifted restrictions on branch opening

Tamilnad Mercantile Bank on October 21 said the Reserve Bank of India (RBI) has lifted the restriction on branch opening with immediate effect.

This comes in the backdrop of the bank's shares getting listed in the Indian Stock Exchanges on September 15, 2022, TMB said in a communique to exchanges.

TMB faced restrictions on opening new branches for failing to raise its subscribed capital to at least half of its authorised share capital line with requirements.

Talking to Moneycontrol in September this year, bank's  Managing Director and Chief Executive Officer K.V. Rama Moorthy had said that the RBI advised the bank to get  listed and then approach them for opening new branches.

TMB has a branch network of over 500 branches in both rural and urban areas, with a majority located in southern states.

According to the bank’s FY22 annual report, as of March-end, TMB’s total advances stood at Rs 33,491.54 crore, up 8 percent Year-on-Year (Y-o-Y).

Some 87% of the lender’s total advances were in the retail, agriculture and micro, small and medium enterprises segments (RAM), the MD said without giving any guidance on credit growth.

Total deposits of TMB Bank, as of March 31, stood at Rs 44,933.1 crore, up 9.7 percent YoY.