Tamilnad Mercantile Bank has received a substantial income tax demand notice of ₹2,04,23,11,454 from the Assessment Unit of the Income Tax Department. The bank disclosed this development through an official communication to stock exchanges on March 18, 2026, following receipt of the demand notice.

Tax Demand Specifics

The Income Tax Department issued the demand notice under Section 156 of the Income Tax Act, 1961, dated March 17, 2026. The following table outlines the key details of the tax demand:

Nature of Disallowance

The tax demand stems from the disallowance of claims made under Section 36(1)(vii) of the Income Tax Act, 1961 for Assessment Year 2013-14. The Assessment Unit passed an order dated March 17, 2026, under section 147 read with section 254 and section 144B, resulting in this monetary demand.

Bank's Response and Impact Assessment

Tamilnad Mercantile Bank has indicated that it is in the process of filing an appeal against the demand notice. The bank expects the appeal to be decided in its favor. According to the bank's assessment, this demand notice would not have a material impact on the bank's financial statements.

Regulatory Compliance

The disclosure was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The bank has provided comprehensive details as required under Schedule III - Para A (20) of Part A, ensuring full transparency with stakeholders and regulatory authorities regarding this significant development.

Tamilnad Mercantile Bank Limited has announced the opening of a new branch in Karamadai, Tamil Nadu, scheduled to commence operations on March 18, 2026. The announcement was made through a regulatory filing to stock exchanges under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Branch Details and Location

The new Karamadai branch will be strategically positioned in Coimbatore District, enhancing the bank's presence in this important region of Tamil Nadu. The branch location and operational details are outlined below:

Regulatory Compliance

The bank has fulfilled its disclosure obligations by informing both the National Stock Exchange of India Limited and Bombay Stock Exchange Limited about this expansion initiative. The communication was signed by Swapnil Yelgaonkar, Company Secretary & Compliance Officer, ensuring proper regulatory compliance.

Strategic Expansion

This new branch opening represents Tamilnad Mercantile Bank's continued commitment to expanding its retail banking network across Tamil Nadu. The Karamadai location in Coimbatore District positions the bank to serve customers in the Mettupalayam Taluk region, potentially capturing business from both individual and commercial banking segments.

The bank's expansion into Karamadai demonstrates its focus on strengthening its presence in key markets within Tamil Nadu, following its established strategy of targeted geographic growth in regions with strong economic potential.