Tuticorin-based lender Tamilnad Mercantile Bank (TMB) is targeting a business volume of Rs 26,000 crore by the end of the current financial year, with a mix of deposits of Rs 15,000 crore and advances of Rs 11,000 crore. The bank is aiming to post a net profit of Rs 240 crore for the 2010-11 fiscal, said G Nagamal Reddy, managing director & CEO, TMB.
?The bank will be opening 11 branches in semi-urban and rural areas by July 2010. We have got RBI?s permission to open one more branch in Delhi and has applied for licences for 75 new branches,? Reddy told FE from Tuticorin.
Giving details on the new initiatives of the bank, he said the bank is joining hands with CC Advenue and Bill Junction to expand the scope of e-commerce. It is also entering the bancassurance sector for life insurance. The bank had started the bancassurance business under general insurance segment by tying up with United India Insurance Company Ltd, in 2009. For online share trading, it has tied up with Religare Securities Ltd.
Releasing the financial results for the year ended March 31, 2010, Reddy said the bank has posted a 22.85% jump in net profit to Rs 184.53 crore from Rs 150.21 crore recorded in the year-ago. Total business increased to Rs 19,927 crore from Rs 16,137 crore, up by 23.49%. While deposits increased 21.67% to Rs 11,639 crore from Rs 9566 crore, advances grew 26.13% to Rs 8,288 crore from Rs 6,571 crore. The CASA ratio has improved to 24.52% from 21.44%.
Reddy said the net interest margin (NIM) of the bank stood at 3.57% as compared to 3.84% of last year and business per branch increased to Rs 92.25 crore from Rs 75.76 crore. Gross NPA was brought down to 1.37% (Rs 115.00 crore) from 1.81% (Rs120.40 crore).
He said by conscious design, the bank has given much thrust to productive sectors like agriculture, SME, education and SHG. The advances to priority sector have been increased from Rs 2,758.20 crore to Rs 3,685.68 crore. The advances to agriculture have been increased to Rs 1475.36 crore which constituted 22.13% of the bank?s adjusted net bank credit.