Travancore National and Quilon Bank

The Travancore National and Quilon Bank (often abbreviated as: TN&Q Bank) was a bank founded in the year 1937 in Trivandrum, India. The bank failed in spectacular circumstances in 1938.[1]

Travancore National and Quilon Bank
TypePrivate sector
IndustryBanking, Insurance, Capital Markets and allied industries
Founded1 April 1937 (1937-04-01) as The Travancore National and Quilon Bank
FounderK. C. Mammen Mappillai and Chalakuzhy Paulose Mathen
Defunct31 March 1938 (1938-03-31)
FateDefunct
Headquarters
India
Number of locations
Madras Presidency
Area served
India
Key people
K. C. Mammen Mappillai, Chalakuzhy Paulose Mathen and Modisseril M. O. Thomas Vakkel
ProductsDeposits, Personal Banking Schemes, C & I Banking Schemes, Agri Banking Schemes, SME Banking Schemes
ServicesBanking, Trade Finance

History

Founding

The Travancore National and Quilon Bank was the result of a 1937 merger between Travancore National Bank (founded: 1912) and Quilon Bank (founded: 1919).[1] At that time it was the fourth largest bank in India.[1] The founders of the bank belonged to the same business family that owned and operated the Malayala Manorama.[2]

Management

The bank was owned and managed largely by Christians from the Indian state of Kerala.[2] The bank had also managed to become the fourth largest bank in India, after the Imperial Bank of India, the Central Bank of India and the Bank of India.[2]

Failure and Final Years

The Travancore National and Quilon Bank suspended withdrawals on June 21, 1938, and was liquidated in August 1938.[1] The two founders of the bank, K. C. Mammen Mappillai and Chalakuzhy Paulose Mathen were both imprisoned for multiple years.[2]

Legacy

The bank is notable for being one of the first banks in India to have failed after the creation of the regulator and central bank, the Reserve Bank of India.[1]

The Banking Regulation Act, 1949 was enacted into law largely as a reaction to the failure of the Travancore National and Quilon Bank. The Reserve Bank of India now wanted to have more powers to deal with failing banks and to safeguard the interests of the depositors.[1]

See also

References
  1. "Yes Bank Crisis: RBI's Trysts With Large Private Bank Failures". bloombergquint.com. Retrieved 27 June 2021.
  2. "The rise and fall of TNQ bank". livemint.com. Retrieved 27 June 2021.
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