Chennai, Feb 26: Following the investment assurance from foreign investors, major change is expected in Tamil Nadu Mercantile Bank's (TMB) management, by inducting majority of directors from Nadar community in the board. Talking to newspersons here today, Nadar Mahajana Bank Share Investors Forum General Secretary G Karikolraj said the change was not only to operate the Bank professionally but also to ensure employment to the community, issuing substantial dividents to shareholders and to place before the board approval for bonus and rights issue.
Following the clearance from the Reserve Bank of India (RBI) for selling the TMB shares only to foreign investors, foreign investment had touched Rs 186 crore (which includes 16.6 crore of advance) for 95,418 shares to Sterling Group with the conditions to transfer 24.93 per cent. The balance 8.62 per cent shares (24,512 shares) were to be tranferred to the 'rightful owners', the members of the Nadar community, who have paid money to the forum for the purchase of TMB shares.
''Once the management is changed, the investors would get one hundred bonus shares, which would cost the company Rs 43 crore,'' he added. Mr Karikolraj said following the new procedure, the Bank's deposit and advances were expected to touch 50,000 crore in 2013. "Fourteen new branches will be opened across the state within five years," he said.