Tamilnad Mercantile Bank (TMB) has set a medium term target of Rs 20,000 crore business by March 2010 as against Rs 13,000 crore for the fiscal ended March 31, 2008. The bank is looking at a total business of Rs 15,500 crore by the end of current fiscal (March 31, 2009), said G Narayana Moorthy, managing director, Tamilnad Mercantile Bank.

Speaking to FE on the sidelines of the launch of a new deposit scheme in Chennai on Friday, he said the bank hopes to achieve the target with new products and increased customer mobilisation. The bank is targeting a net profit of Rs 155 crore in the fiscal as against Rs 126.74 crore during last fiscal.

Of the total targeted business of Rs 15,500 crore, the bank aims to post a deposit base of Rs 9,600 crore (Rs 7,670 crore) and advances of Rs 6,900 crore (Rs 5,331 crore). The net non-performing assets (NPA) level will be brought down to less than 0.25% by March 2009, he said. The bank is also planning to add 97 ATMs, taking the total size of 200 ATMs. The CAR, as of March 31, 2008 stood higher at 15.35%.

The bank is in the process of undertaking bancassurance (both life and non-life insurance products) and plans to tie up with leading insurance companies. Plans are afoot to provide internet facility and debit cards as well. The bank will step up the share of fee income by increased focus on non-fund based activities and new diversified service offerings.

Moorthy was in Chennai on Friday to launch `TMB Freedom?, a deposit scheme with both life and accident insurance cover for the customers apart from value added benefits. Under this scheme, persons in the age group of 18 to below 58 years can open a fixed deposit account with a minimum deposit of Rs 25,000 and multiples of Rs 5,000 thereafter. The deposit period is 12 months. Senior citizens will get 10.75% interest and others will 10.50%.