Tamilnad Mercantile Bank : 100 years of successful banking

 

Financial Results of the Bank for the year2020-21

 

Tamilnad Mercantile Bank Limited (TMB) one of the premier Old Private Sector Scheduled Commercial Banks, having Head Quarters in Thoothukudi has a long cherished history of more than 99 years of successful banking with strong fundamentals and a record of continuous profit making in the industry.

 

TMB having pan India presence with 509 branchesand12 Regional Offices across 16 states and 4 Union Territories is serving more than 4.50 million delighted customers. The bank is having 1132 ATMs, 47 e-lobbies and 260 Nos. of Cash Recycler Machines.

 

The Board of Directors of the Bank adopted the audited results of the Bank for the financial year ended 31.03.2021in their meeting held at Thoothukudi on 27.04.2021. In the presence of Board of Directors of the Bank, Shri K.V. Rama Moorthy, Managing Director and CEO of the bank has declared the financial results of the Bank for the year 2020-21. General Managers of the Bank were also present at the event. 

 Shri K.V. Rama Moorthy, Managing Director & CEO, TMB declares the financial results of the Bank for the year 2020-21



Bank’s Results at a glance(Rs. in Crores)

 

Parameters

2020-21

2019-20

Growth (%)

Total Deposits (Rs.)

40,970.42

36,825.03

11.26

Total Advances (Rs.)

31,541.03

28,236.18

11.70

Total Business (Rs.)

72,511.45

65,061.21

11.45

CASA (Rs.)

11,685.27

9,518.05

22.77

Operating Profit (Rs.)

1,202.04

995.05

20.80

Net Profit (Rs.)

603.33

407.69

47.99

Gross NPA (Rs.)

1,084.78

1,020.98

6.25

Gross NPA (%)

3.44

3.62

-  4.97

Net NPA (Rs.)

613.82

497.47

23.39

Net NPA (%)

1.98

1.80

10.00

Capital Adequacy Ratio - Basel III (%)

18.94

16.74

13.14

Capital Adequacy Ratio – Basel II (%)

18.96

16.76

13.13

Provision Coverage Ratio (%)

79.53

80.75

-1.51

Board has announced Interim Dividend of 50% i.e. Rs. 5 per share

Credit to Priority& MSME Sector:

§     The Bank has been giving continued thrust on advances to Priority Sectors like Agriculture, MSME, Education, Housingetc and the same is constituting 79.06% of its Adjusted Net Bank Credit (ANBC) wellabove the regulatory requirement of 40%.

§  The Advances to Priority sector has increased to Rs.22,540.97Crores (PY Rs.18,711.73Crores)with a growth rateof 20.46%.

§  The Bank’s Advances to Agriculture sector stood atRs.8,645.66Crores.The Advances to Agriculture Sector constitute 30.33%of total advances, abovethe regulatory requirement of 18%.

§  Credit to MSME sector has increased to Rs.12,036.34Crores(PYRs.10,169.86Crores)with a growth rate of 18.35%.

 

Y-O-Y Performance:

§  The Bank’s deposits increased to Rs.40,970.42 crores (PY Rs.36,825.03 crores)with a growth rate of 11.27% whereas the average growth was 9.39%.

§  The Bank’s CASA position has increased toRs.11,685.27 crores with a growth rate of 22.77% andthe average growth was 18.37%.

§  The advance level of the Bank has increased to Rs.31,541.81crores witha growth rate of 11.71% andthe average growth was 9.98%.

§  Agriculture advances increased to Rs.8,645.66 crores (PY Rs.6,993.90 crores) with a growth rate of 23.62%

§  MSME advances increased to Rs.12,036.34 crores (PY Rs.10,169.86 crores) with a growth rate of 18.35%

§  Retail advances portfolio increased to Rs.6,496.11 crores (PY Rs.5,441.62 crores) with a growth rate of 19.38%

§  Non-interest income stood at Rs.644.17 crores (PY Rs.526.45 crores) with an increase rate of 22.36%

§  Operating expenses stood at Rs.979.66 crores (PY Rs.850.91 crores) with an increase rate of 15.13%

§  The Operating Profit is atRs.1202.04 Crores (PY Rs.995.05Crores) with a growth rate of 20.80%

§  The Net Profit is increased from Rs. 407.69 crores to Rs. 603.33 crores with a growth rate of 47.99%

§  The Net Interest Income (NII) has increased to Rs.1,537.53Crores (PY              Rs.1,319.51 Crores) with a growth rate of 16.52%

§  The Bank’s Net worth increased to Rs.4580 crores (PY Rs.3,980 crores) with absolute rise of Rs.600 crores registering a growth rate of 15.08%

§  Interest Income stood at Rs.3,609.05 Crores with an increase from previous year figure of Rs.3,466.11 Crores (Increase by Rs.142.94 Crores @ 4.12%)

§  The Interest Expenditure has decreased from the level of Rs.2,146.60 Crores to Rs.2,071.52Crores (decrease by Rs.75.08 Crores @ (-3.50%).

§  The Gross NPA as a percentage to total advances reduced to3.44% (PY 3.62%) andNet NPA stands at1.98% (PY 1.80%).

§  NPA and Restructured advances of the Bank is only 3.93%

§  The Capital Adequacy Ratio (Basel III) of the bank increased to 18.94% (PY 16.74%)

§  The Capital Adequacy Ratio (Basel II) of the bank increased to 18.96% (PY 16.76%)

§  Provision Coverage Ratio of the Bank standsat79.53% (PY80.75%)

§  Bank has made additional Standard Asset Provision (Covid II wave) of Rs. 50 cr.

 

Book Value of Shares:

The Book Value per Share stood atRs.321.38and the face value of the share is Rs.10. Earning per shareis Rs.42.34.

 

Network Expansion during 2020-21:

§  91 new cash recycler machines were installed at Branches / ATM Centers, taking the tally to 260.

§  16 new E-lobbies were opened with a total number E-lobbies stood at 47.

Major initiatives during 2020-21:

§  TMB inaugurated its second Robotic operation at Currency Chest, Pudukottai, Thoothukudi District, for cash sorting, segregation and bundling.

§  TMB inaugurated issuance of FASTag by having tie up arrangement with IDBI Bank, to its customers as well as general public

§  TMB entered into tie-up arrangement for General Insurance with M/S.New India Assurance Co Ltd.

§  Bank has disbursed 13601 Nos. of fresh advances totally to the tune of Rs.1559.65 Crores under Emergency Credit Line Guarantee Scheme (ECLGS) during COVID-19 pandemic issue

IT related Initiatives made during 2020-21:

§  TMB launched TMB DigiLobby which features the all sort of banking services in one app

§  TMB launched WhatsApp banking

§  “TMB - Rupay Select International debit card” has been launched with many added features

§  Implementation of Public Fund Management System (PFMS) to handle Government transactions

Business Plan strategies for the Financial Year2021-22:

§  Thrust on consistentCASA growth.

§  Credit growth with specific thrust on retail lending.

§  Leveraging Technology and HR for business development for enhancing delivery efficiencies of all banking services.

New Initiatives for the Financial Year2021-22:

§  Setting up of 50 more e-Lobbies to reach 100 in total on our Centenary Year celebration

§  Launching Mobile e-lobbies on our Centenary Year

§  Finacle 10.x Migration

§  Introducing Mobile Banking (Capex Model)

§  Centralized Account Opening solution

§  Onboarding Customers using Video KYC

§  Customer Relationship Management Solution – CRM

§  Introducing Call Center operations

 

 

 

            

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