Investors need not be worried about the safety of their deposits in Tamilnad Mercantile Bank, said Reserve Bank of India Regional Director K.R. Ananda on Thursday.
Addressing TMB depositors after launching the ‘TMB Smart Shoppers Visa debit card’, he said “we are reviewing the financial performance of the bank every month and we do not have any concern on financial matters. The bank has a management problem and we hope it will be settled soon.”
Currently, TMB has a truncated board with two nominees from RBI and TMB’s Chairman and Managing Director G. Nagamal Reddy. “The financial performance of the bank is satisfactory. During our interactions, we keep asking them questions on financial parameters. The management is taking proper decisions and we feel it will be in the forefront among the private sector banks very soon,” he added.
Mr. Ananda asked the bank officials to inform its depositors about the shortfalls at the time of issue of debit card and precautions to be taken to safeguard their money.
His advice to the cardholders was “Use it carefully. Don’t keep the Personal Identification Number and debit card together. Losing a debit card is worse than losing your wallet.”
In his address, Mr. Reddy said that the close monitoring by the RBI enabled the bank to post better results than ever before.
He also outlined the bank’s growth strategy and said that the borrowing cost would be slashed in the coming days. Besides, the bank was in the process of tying up with a life insurance company.
