Coimbatore: The Tamilnad Mercantile Bank (TMB) was given a penalty of Rs 6 crore by the Reserve Bank of India for failing to uphold the norms while issuing bonus shares to non- resident investors of the bank.

TMB issued bonus shares going against the directions on issue and pricing on April 21, 2016.

“This penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47A (1) (c) read with Section 46 (4) (i) of the Banking Regulation Act, 1949 taking into account the failure of the bank to adhere to the directions while issuing bonus shares to certain non-resident entities,” said RBI chief general manager Jose J Kattoor.