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 has a pan India presence with 543 branches and 12 Regional Offices across 17 states and 4 Union Territories serving more than 5 million delighted customers.

The Board of Directors of Tamilnad Mercantile Bank Ltd took on record the Unaudited results of the Bank for the Second quarter of FY24 in their meeting held at Madurai on 27.10.2023. Shri. S. Krishnan, Managing Director and CEO of the bank declared the results. Chief Financial Officer, General Managers, and other senior officials of the Bank were also present at the event.

Key Highlights of the Performance for the Quarter ended 30th September 2023:

  •  Net worth has increased to ₹7,384 crore from ₹6,461 crore Y-o-Y
  •  The book value of the share has increased to ₹466 from ₹408 Y-o-Y
  •  Total Income has improved to ₹1,365 crore from ₹1,141 crore Y-o-Y
  •  Net Profit has increased to ₹274 crore from ₹262 crore Y-o-Y
  •  The RAM segment has increased to 91% from 87% Y-o-Y
  • Total SMA Accounts have reduced to 5.59% from 12.42% on total advances Y-o-Y

The total business of the bank in the Second quarter ended 2023-24 stood at ₹85,092 Crores with a growth rate of 9.07%.

The Bank’s deposit and advance portfolio stood at ₹47,314 Cr and ₹37,778 Cr respectively.

Credit to Priority & MSME Sector as of 30.09.2023:

The Bank has been giving continued thrust on advances to Priority Sectors like Agriculture, MSME, Education, Housing, etc. constituting 75% of its ANBC, above the regulatory requirement of 40%.
The Advances to Priority sector has increased to ₹28,198 Crores (PY ₹25,079 Crores) with a growth rate of 12.44%.
The Bank’s Advances in the Agriculture sector stood at ₹12,752 Crores. The Advances to the Agriculture Sector constitute 33.76% of total advances, above the regulatory requirement of 18%.
Credit to the MSME sector has increased to ₹13,132 Crores (PY ₹12,690 Crores) with a growth rate of 3.49%.

Y-O-Y / Q-O-Q Performance:

The Bank’s deposits have increased to ₹47,314 crores (PY ₹43,137 crores)
The advance level of the Bank has increased to ₹37,778 crores with a growth rate of 8.32% a YOY basis.
The Net Profit is at ₹274 crores for the quarter Q2 FY 2024 as against ₹262 crores for Q2 FY 2023 registering a growth rate of 4.58% on a YOY basis.
The Net Interest Income (NII) has increased to ₹533 Crores for the quarter, Q2 FY 24 (Q2 FY 23 ₹509 Crores) registering a growth rate of 4.72%.
Return on Asset at 1.89% & Return on Equity at 15.01% for the reporting quarter. (Q2 FY 23 2.03% and 17.65% & Q1 FY 24 1.85% & 14.80% respectively)
The Bank’s Net worth increased to ₹7384 crores (PY ₹6461 crores) with an absolute rise of ₹923 crores registering a growth rate of 14.29%.

New initiatives during Q2 FY 2024:

  •  We have opened 5 branches during the Q2 FY24.
  •  To tap the emerging MSME market with focused attention, MSME Loan processing HUB has been started in Bengaluru, Hyderabad, Trichy, and Salem.
  •  We have signed up with JOCATA Financial Advisory & Technology for Credit Automation.
  •  Portfolio Management Services(PMS) has been launched in tie-up with M/s.Tulsian PMS Private Limited.

By Sujata