IT wing conducts 'spot verification' at head office of Tamilnad Mercantile

The Intelligence and Criminal Investigation of the Income Tax department has undertaken a 'spot verification' at the head office of over century-old private sector Tamilnad Mercantile Bank, the bank said on Tuesday.

The business operations of the bank continued, as usual, today and were not impacted due to the verification, Tamilnad Mercantile Bank said.

"We hereby notify that the Intelligence and Criminal Investigation Directorate of Income Tax, Chennai, is conducting a spot verification of statutory compliances under section 285BA of the Income Tax Act, 1961 at our head office," the Thoothukudi-based bank said in a BSE filing.

The bank is fully cooperating with officials during the ongoing proceedings and responding to the clarifications and details sought by them, the bank said in its response.

"We will comply with our legal obligation for disclosure from time to time," it said.

Tamilnad Mercantile Bank posted an 11.45 per cent rise in its net profit for the fourth quarter ending March 31, 2023, at Rs 253 crore, helped by a decline in bad loans.

The bank earned a net profit of Rs 227 crore during the corresponding period of the last financial year.

Total income during the quarter under review rose to Rs 1,204 crore, from Rs 1,200 crore, a year ago.