Tamilnad Mercantile Bank (NSE:TMB, BOM:543596) said the Appellate Tribunal under SAFEMA, New Delhi has reduced the penalty imposed on the bank in a Foreign Exchange Management Act (FEMA) contravention case to 34 million Indian rupees from 170 million rupees.

A penalty was handed down by the Directorate of Enforcement in 2020 concerning alleged irregularities in recording share transfers. The bank and its former directors and company secretaries had challenged the order before the tribunal.

Tamilnad Mercantile Bank said it had already deposited the original penalty amount of 170 million rupees while filing the appeal. The bank is now eligible for a refund of 136 million rupees and is reviewing the tribunal's order before taking further action.