The Hindu Business Line : TMB posts Rs 101-cr net, to pay Rs 100

The Tuticorin-based Tamilnad Mercantile Bank (TMB) has posted net profit of Rs 100 crore for the first time. The figure for 2005-06 stood at Rs 101.19 crore, while operating profit was Rs 198.91 crore, up by Rs 24.70 crore compared to the previous year.

The board has recommended a dividend of Rs 100 per share subject to approval by the AGM, said the Chairman, Mr S. Radhakrishnan.

Announcing the financial results at a news conference today, he said that the bank has achieved 100 per cent networking of all its 173 branches, which includes 36 rural branches.

Business volumes have increased by 11.75 per cent at Rs 8,329 crore. The credit-deposit ratio improved from 54 per cent to 60 per cent. Net NPAs have been brought down from 2.95 per cent to 2.17 per cent.

The bank proposes to install 50 more ATMs at important locations shortly in addition to the existing 37 ATMs; the bank also provides access to over 5,500 ATMs nationwide.

TMB also proposes to start 31 branches in the coming year, of which 14 would be in Tamil Nadu.

The bank has introduced DD drawing and cheque collection arrangement with IDBI Bank and HDFC Bank in 152 locations, with the benefit of no extra charge towards other banks' commission.

The Chairman said that the bank handled foreign exchange merchant turnover of Rs 3,076 crore during the year.

The bank has become a clearing banker for the NCDEX and the process of becoming a clearing banker for the MCX is under way.

Last year, the bank entered into a tie-up arrangement with Prudential ICICI, UTI Mutual Fund, Reliance Capital Asset Management Company, and Franklin Templeton Asset Management Company to offer mutual fund products.

On the future roadmap, the Chairman said that the bank proposes to bring down net NPAs to below one per cent by March 2007, increase net profit to Rs 120 crore and achieve business volumes of Rs 10,350 crore.

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