“With reference to our letter dated March 25, 2021 on the above subject, reserve Bank of India by letter Reference.No.DoR.HOL.No.S4688/16.01.075/2022-23 dated 21 October 2022, has removed the restriction on branch opening with effect from 21 October 2022, as the shares of the Bank were listed on the stock exchanges. September 15, 2022,” read a TMB letter.
The ban on opening of new branches will end from October 21, with the bank’s shares being listed on the stock exchange a month in advance.
The RBI had banned TMB in 2019 after the bank’s shareholders decided to increase the authorized share capital to Rs 500 crore. The central bank objected to not raising its subscribed capital to at least half of the authorized capital as required by the bank.
Now with the lifting of restrictions, the Tamil Nadu-based bank is likely to expand its branches beyond the southern regions of the country.