I think “banned” is too strong of a word. It wasn’t “banned” as the term is used today.
As far as I know it wasn’t purged from public libraries or somehow removed from public access.
(Note, most people didn’t carry a copy of something called “the Bible” with them--even Paul had a few “scrolls” which were more likely a copy of Isaiah--but he wouldn’t have had a portable copy of a bound text that could be identified as “the Bible").
It simply was not considered authoritative text by the Jewish community at large and it was suspect even in the Christian community. It was popular reading, certainly, but to say it was ever canonical and fully accepted as canonical by the Christian community is a stretch.
Note: And yes, Enoch is quoted in the New Testament. But don’t forget, Paul quotes pagan poets in his writings--it didn’t mean he thought they were authoritative as scripture.