The Hindu Business Line : Tamilnad Mercantile Bank full-year net up

Tuticorin June 7 Tuticorin-based Tamilnad Mercantile Bank (TMB) has made an operating profit of Rs 231.2 crore for 2006-07, registering an increase of 18.98 per cent over the previous year. The net profit has increased from Rs 101.19 crore to Rs 105.78 crore during the same period.

The board has proposed a dividend of 1000 per cent for the shareholders, subject to approval of members at its annual general meeting.

The business volume for the year stood at Rs 10,067 crore, up by 20.87 per cent from Rs 8,329 crore last year, comprising Rs 6,020 crore of deposits and Rs 4,047 crore of advances, said Mr G. Narayana Moorthy, Managing Director, while highlighting the financial performance of the bank for 2006-07, in a press conference held here on Wednesday. Mr M.G.M. Maran, Chairman, was present.

Deposits, advances

While deposits recorded a growth of 15.7 per cent, advances recorded a growth of 29.46 per cent. The credit-deposit ratio improved from 60 per cent to 67.23 per cent.

Of the total advances, 48.64 per cent constituted advances to the priority sector. The net NPA has been brought down from 2.17 per cent to 0.98 per cent and the return on assets was at 1.57 per cent. The capital adequacy ratio stood at 16.77 per cent, against the minimum of 9 per cent stipulated by the Reserve Bank of India, Mr Narayana Moorthy said. 51,298 accounts have been opened under the financial inclusion project and they have been provided free ATM cards, he added.

Plans ahead

Unveiling future plans, Mr Narayana Moorthy said the bank has planned to open 17 more branches by September and establish 28 offsite ATMs during the course of the year, of which 17 will be in Tamil Nadu and 11 in other states.

By the end of March 2008, the bank aims to secure a business volume of Rs 13,000 crore with a net profit of Rs 150 crore, and bring down the net NPA below 0.5 per cent.

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