[ad_1]
The 101-year old lender has been juggling multiple regulatory setbacks over the recent years.
On Friday, the Securities Appellate Tribunal dismissed a plea by six of the lender’s shareholders, who raised an objection to the bank’s decision to withdraw the offer for sale component from the IPO.
In June 2019, the central bank retracted its permission to allow Tamilnad Mercantile Bank to open new branches, froze the managing director and chief executive officer’s remuneration and restricted the lender’s entry into new lines of business after it failed to comply with certain regulations. It also stopped the bank from declaring and distributing dividends owing to the non-compliance.
After a review in March 2021, the regulator lifted most of the restrictions subject to listing the bank’s equity shares by Dec. 31, 2021. The RBI said it would review its decision to restrict branch opening post the listing of shares.
Tamilnad Mercantile Bank will direct the net proceeds from the IPO towards augmentation of the bank’s tier-1 capital base in order to meet its future capital needs, it said. The growth in the lender’s assets, primarily loans and advances and investment portfolio will fuel the capital expenditure.
The bank, considering its tier-1 position, has no plans to augment the tier-2 capital in the near future.
[ad_2]
Image and article originally from www.bqprime.com. Read the original article here.