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After taking on record the audited results for the fiscal ended March 31, 2011, the board of Tamilnad Mercantile Bank has resolved to declare a dividend of Rs 1,000/share of Rs 10 each, at the meeting held here on Friday.
“This is a record 10,000 per cent dividend. The outgo on this account would be Rs 28.45 crore. The same would be distributed after the annual general meeting (AGM),” Mr A. K. Jagannathan, Managing Director and Chief Executive of TMB, said.
The bank had declared a dividend of Rs 750/share (of Rs 10 face value) last fiscal.
Performance
Net profit grew 36 per cent to Rs 250.90 crore in 2010-11 against Rs 184.53 crore in 2009-10. The net interest income rose by 45 per cent to Rs 543.89 crore (Rs 374.55 crore).
The total business swelled 23 per cent to Rs 24,679 crore (Rs 20,037 crore). With deposits accounting for an 18 per cent increase to Rs 13,808 crore (Rs 11,655 crore), and advances growing by 30 per cent to Rs 10,871 crore (Rs 8,382 crore).
The net NPA increased marginally to 0.27 per cent (Rs 29.31 crore) from 0.24 per cent (Rs 19.98 crore) as at end-March 2010.
Rate hike
The bank had increased the Base Rate by 150 basis points in the last 12 months from 8 per cent to 9.5 per cent. It is now planning to hike it by another half percentage point to 10 with effect from May 9.
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