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 appointing TMB as an 'agency bank' of RBI to undertake government agency business was signed by the bank and RBI in Mumbai.
"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 products and services," Managing Director and CEO, S. Krishnan, said in a press release.
"It gives me immense pleasure to share this appointment by RBI, with all our stakeholders," he added.
TMB was established in 1921 as Nadar Bank. It offers a range of services primarily to micro, small and medium enterprises, agricultural and retail customers.
The bank had reported a 37.1 per cent rise in net profit at Rs 262 crore in the July-September quarter on growth in income and fall in bad loans. The bank had earned a net profit of Rs 191 crore last year.