RBI authorises Tamilnad Mercantile Bank to undertake govt business

CHENNAI: Private sector lender Tamilnad Mercantile Bank (TMB) on Wednesday said it has been authorised by the Reserve Bank of India to undertake government business on behalf of the banking regulator.

An agreement in this connection was signed by the bank with RBI in Mumbai for appointing TMB as an 'agency bank' of RBI to undertake government agency business.

''On getting listed in the stock exchanges, Tamilnad Mercantile Bank Ltd is back to enrich our vision in expanding the network pan India with added features in the products and services,'' the bank's managing director and CEO S Krishnan said in a press release.

''It gives me immense pleasure in sharing this appointment by RBI to all our stakeholders,'' he added.

TMB is one of the oldest private sector banks with a history of over 100 years, having been established in 1921 as Nadar Bank. The bank offers a wide range of services primarily to micro, small and medium enterprises, agricultural and retail customers.

The bank had reported 37.1 per cent rise in net profit at Rs 262 crore for the July-September quarter for FY23 on growth in income and fall in bad loans. The bank had earned a net profit of Rs 191 crore for the last year's period.