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“The economic slowdown has not impacted our growth. We have achieved a 25 per cent growth in net profit, year-on-year,” said Mr A.K. Jagannathan, Managing Director, Tamilnad Mercantile Bank.
Releasing the audited financial results for the 2011-12 fiscal, a day before stepping down from office, Mr Jagannathan told this correspondent that he was happy to demit office when the bank's growth momentum was reaching great heights.
For the quarter ended March 2012, the net profit grew 66 per cent over the corresponding quarter of the earlier fiscal to Rs 120.09 crore and the net interest income by 15.6 per cent to Rs 182.11 cr (Rs 157.49 cr).
The total business crossed the targeted Rs 31,000 crore mark to Rs 31,034 crore. The bank is targeting a business of Rs 40,885 crore this fiscal.
The Net Interest Margin was 4.09 per cent.
The Net NPA increased marginally from 0.27 per cent in 2010-11 to 0.45 per cent at the end of the just ended fiscal. “We are taking every step to recover and revive an old account,” the MD said.
The bank's Capital Adequacy Ratio stood at 14.69 per cent. “At the current and sustained growth rate, we can manage till 2019 without going for an IPO,” he said.
The bank has for the first time in many decades opened 47 branches in 2011-12 to take the network to 285. Its ATM network also grew to 315, with the addition of 130 ATMs last fiscal, Mr Jagannathan said.
Stating that “size does not matter” and the fact that the bank was not looking at opening branches in big cities, but in places where people saw the need for banking services, Mr Jagannathan said: "we are not looking for big accounts either, but in serving the needy."
The board today decided on a final dividend of Rs 450 a share (of Rs 10 face value). It had for the first time paid its shareholders an interim dividend of Rs 900. The last two years dividend payout is still pending. (The Board declared a 10000 per cent dvidend last year at Rs 1000 a share. It is Rs 1350 this year - inclusive of the interim dividend of Rs 900).
TMB has recruited 470 candidates last year and is looking to recruit a similar number this year. ‘We are also planning to go to campus,' he said.
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