Tamilnad Mercantile Bank Ltd (TMB) one of the renowned Old Private Sector Banks, having its Head Quarter in Thoothukudi has a long cherished history of 100+ years of eventful existence with strong fundamentals and an enviable track record of continuous profit making in the industry.
TMB having pan India presence with 509 branches and12 Regional Offices across 16 states and 4 Union Territories serves more than 5 million delighted customers.
The Board of Directors of Tamilnad Mercantile Bank Ltd took on record the reviewed results of the Bank for the half year ended 30.09.2022 in their meeting held atChennai on 27.10.2022. Shri. S.Krishnan, Managing Director and CEO of the bank declared results of the Bank for the half year ended September 2022. General Managers, Chief Financial Officer, and other senior officials of the Bank were also present at the event.
Bank’s Results at a glance (₹ in Crores)
| Parameters | September 2021 (HY) | September 2022 (HY) | Growth YoY |
| Total Deposits (₹) | 41,022.21 | 43,136.65 | 5.15% |
| Total Advances (₹) | 31,597.66 | 34,876.53 | 10.38% |
| CASA (₹) | 11,439.32 | 13,192.64 | 15.33% |
| Operating Profit (₹) | 688.94 | 763.63 | 10.84% |
| Net Profit (₹) | 392.08 | 496.51 | 26.63% |
| Net Interest Income | 874.75 | 1032.57 | 18.04% |
| Gross NPA (₹) | 1045.26 | 593.34 | -43.25% |
| Gross NPA (%) | 3.31 | 1.70 | -48.64% |
| Net NPA (₹) | 564.95 | 295.97 | -47.61% |
| Net NPA (%) | 1.79 | 0.86 | -51.96% |
| Provision Coverage Ratio | 80.50 | 88.58 | 10.04% |
| ROA | 1.63 | 1.93 | 18.40% |
| ROE | 16.53 | 16.84 | 1.88% |
The total business of the bank at the half year endedSeptember 2022 stood at ₹78,013.18 Crores with a growth rate of 7.43%.
The Bank’s deposit and advance portfolio stood at ₹43,136.65 Cr and ₹34,876.53 Cr respectively.
Credit to Priority & MSME Sector:
▪ The Bank has been giving continued thrust on advances to Priority Sectors like Agriculture, MSME, Education, Housing etc. constituting 66.64% of its ANBC, above the regulatory requirement of 40%.
▪ The Advances to Priority sector has increased to ₹25,079.09 Crores (PY ₹22,878.78 Crores) with a growth rate of 9.61%.
▪ The Bank’s Advances to Agriculture sector stood at₹10,386.43 Crores. The Advances to Agriculture Sector constitute 29.78% of total advances, abovethe regulatory requirement of 18%.
▪ Credit to MSME sector has increased to ₹12,689.76Crores (PY ₹11,662.74 Crores) with a growth rate of 8.81%.
Y–O-Y Performance:
▪ The Bank’s deposits has increased to ₹43,136.65crores (PY ₹41,022.21 crores)
▪ The Bank’s CASA position has increased to₹13,192.64 crores with a growth rate of 15.32%
▪ The advance level of the Bank has increased to ₹34,876.53 crores with a growth rate of 10.38%
▪ The Operating Profit is at ₹763.63 Crores (PY ₹688.94 Crores)
▪ The Net Profit is at ₹496.51 crores (PY ₹392.08Crores) registering the growth rate of 26.63%.
▪ The Net Interest Income (NII) has increased to₹1032.57 Crores (PY ₹874.75 Crores) registering a growth rate of 18.04%.
▪ Net Interest Margin at 4.47% (PY 4.04%)
▪ Return on Asset at 1.93% & Return on Equity at 16.84% (PY 1.63% and 16.53% respectively)
▪ The Bank’s Net worth increased to ₹6,461.20 crores (PY ₹4,905.87 crores) with an absolute rise of₹1,555.33 crores registering a growth rate of 31.70%
▪ The Gross NPA as a percentage to total advances stood at 1.70% and net NPA stands at 0.86%. (PY 3.31% and 1.79% respectively)
▪ Provision Coverage Ratio of the Bank increased to 88.58% (PY 80.50%)
Capital Expansion during half year ended September 2022:
• The Bank has raised a Capital of Rs.831.68 Cr through IPO which contributed to the increase in the Capital. The restriction on branch opening is lifted by RBI wef 21.10.2022 based on the listing ofshares of the bank in BSE & NSE.
Network Expansion during half year ended September 2022:
▪ 4 new ATMs were added this year & the total number of ATMs stood at 1145.
▪ 9 new cash recycler machines were installed at Branches / ATM Centers, taking the tally to 291.
New Initiatives during the next half year 2022–23:
● Bank’s migration to Finacle 10x will bring more operational efficiency and business opportunity.
● Bank has planned to open more number of branches in potential locations shortly.
● Digital initiatives and Digital Banking Unit (DBU) throws new opportunities to grow business manifolds.
● To popularize v-kyc system to offer ease of account opening experience to customers.
● Introduction of Centralised Account opening process will reduce the account opening TAT which will provide faster onboarding experience to new customers.
● Bank’s recent tie-up with Finwizard Technology Private Limited (Fisdom) will enable customers to invest in mutual fund products in a safe and convenient way.
● Bank has planned to introduce more efficient and convenient e-tax payment system to customers.
● Bank will take steps to introduce Government Agency business since the embargo on branch opening is lifted by RBI.
● Planning to introduce new variants of credit cards designed exclusively for current and savings customers which will offer revolving credit facility to customers.
● Bank will introduce QR code services, Rewards and loyalty programs for Debit and Credit card holders through Fintech tie-up.
● Bank has proposed to tie-up with new Life and General Insurance Agencies to offer more secured and convenient insurance products to customers through digital mode.
● Planned to tie-up with new DP service providers to offer digital onboarding of trading services.
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