Tamilnad Mercantile Bank (TMB) said on Sunday that “certain deficiencies were observed” in several specific financial transactions during the Income Tax Department’s “spot verification” last week and the “errors” have been rectified.
“The bank’s business operations continue as usual and are not affected by these developments. We comply with our statutory obligations to disclose information from time to time,” the private sector lender said in a BSE filing.
The statement came after the Intelligence and Criminal Investigation Branch of the Income Tax (I-T) department conducted a “spot check” on June 27 at the bank’s headquarters in Tuticorin, about 500 kilometers from Chennai.
The IT department found that the bank had not filed statements of financial transactions relating to cash deposits of more than Rs 2,700 crore.
“…we would like to inform you that during verification it was found that several SFT (Specified Financial Transaction) returns were not filed and certain errors/shortcomings were observed in several SFT returns filed,” TMB said in the latest stock exchange. filing.
“The returns that should have been submitted have since been submitted and the identified deficiencies are also being addressed and corrected,” the bank said.
The lender also stated that the development will have no impact on the financial statements that the bank submits to the statutory authorities.
“No financial impact on the bank is expected. As a law abiding organisation, we provide all the details required by the Income Tax Department,” said TMB.
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