RBI lifts ban on new branches by Tamilnad Mercantile Bank

At present, the bank has 509 branches -- 106 rural, 247 semi-urban, 80 urban and 76 in metropolitan

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 its three-year ban on opening new branches by the Thoothukudi-based bank with effect from October 21.

The Bank’s shares were listed in the stock exchanges on September 15. At present, it has 509 branches -- 106 rural, 247 semi-urban, 80 urban and 76 in metropolitan.

Out of this, only around 40-50 were loss making. There were media reports that indicated that the bank may be looking to add another 100-150 branches in the next 18-24 months, the majority of which will be in states other than Tamil Nadu.

The Apex Bank took the decision to come up with restrictions on the bank reportedly in June 2019.