TamilNad Mercantile Bank profit rises by 141%

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Chennai | Published: November 13, 2019 1:44:04 AM

Tamilnad Mercantile Bank (TMB), one of the oldest private sector scheduled commercial banks in the country, is betting on technology to expand its business in a big way.

The bank’s net worth increased to Rs. 3,725.10 crore from Rs. 3,433.16 crore with an absolute rise of Rs. 291.94 crore, registering a growth rate of 8.50%.

Tamilnad Mercantile Bank (TMB), one of the oldest private sector scheduled commercial banks in the country, is betting on technology to expand its business in a big way. The net profit of the bank for H1 was at Rs. 151.07 crore as compared to Rs. 62.74 crore in the same period last fiscal, registering growth of 141%.

The Tuticorin-based bank will be setting up 29 more e-lobbies in the next six months, introducing hi-tech call centre operations (24X7), rolling out technology-aided account opening process and launching Artificial Intelligence-powered Chatbot, apart from deploying robotic operations in currency chest.

Releasing the H1 results, KV Rama Moorthy, MD and CEO of the bank, in a statement said the bank’s thrust will be on consistent CASA growth, credit growth with specific thrust on retail lending and leveraging technology and HR for business development.

Talking about the business targets for FY20, he said the total business is expected to cross Rs. 72,500 crore by the end of March 2020.

While total deposits are likely to cross Rs. 41,000 crore, the total advances may cross Rs. 31,500 crore. A net profit of Rs. 360 crore is expected. Non-interest income stood at Rs. 229.27 crore as against Rs. 202.06 crore while operating expenses stood at Rs. 423.89 crore as compared to Rs. 407.63 crore.The net interest income (NII) increased to Rs. 634.69 crore from Rs. 616.81 crore.

The bank’s net worth increased to Rs. 3,725.10 crore from Rs. 3,433.16 crore with an absolute rise of Rs. 291.94 crore, registering a growth rate of 8.50%. Interest income stood at Rs. 1,697.75 crore with an increase from previous year figure of Rs. 1,591.31 crore.

The total business of the bank at the half year ended 2019-20 stood at Rs 60,852.48 crore, with a growth rate of 11.7%. The bank’s deposit and advance portfolio stood at Rs 34,068.80 crore and Rs 26,783.68 crore, respectively. Gross NPA of the bank stood at 4.91% while net NPA was at 2.4%.

According to Moorthy, the bank has been giving continued thrust on advances to priority sectors like agriculture, MSME, education and housing, constituting 70.59% of its adjusted net bank credit (ANBC), above the regulatory requirement of 40%.

Advances to priority sector increased to Rs 17,442.95 crore with a growth rate of 14.16%. The bank’s advances to agriculture sector stood at Rs 6,342.18 crore that constituted 23.68% of total advances, above the regulatory requirement of 18%. Credit to MSME sector has increased to Rs 10,241.71 crore, with a growth rate of 12.08%.

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