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Thoothukudi-headquartered Tamilnad Mercantile Bank’s net profit slipped 29 per cent to ₹221.92 crore in FY2017-18, compared to the ₹316.66 crore it posted during the corresponding period in the previous fiscal. Its operating profit grew 14.8 per cent to ₹1,005.99 crore (₹875.63 crore).
KV Ramamoorthy, the bank’s Managing Director and Chief Executive, said that the provision coverage ratio was higher at 72.71 per cent in FY18, compared to the coverage of 66.5 per cent in the previous fiscal.
Both gross and net NPA grew to 3.60 per cent (2.91 per cent) and 2.16 per cent (1.74 per cent), respectively. The bank’s chief, however, said that it was much lower than some of the nationalised banks that had posted double-digit NPAs.
Total business
The total business of the bank in FY18 rose 3.76 per cent, with deposits growing by a marginal 0.74 per cent and advances by 8.18 per cent. Ramamoorthy maintained that the thrust on advances was to the priority and MSME sector. Going forward, the bank would strengthen CASA growth, give greater thrust to retail lending, and leverage its technology initiatives and HR for business development, he said.
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