Tamilnad Mercantile Bank reports 58% rise in net profit

Tamilnad Mercantile Bank (TMB) has disbursed over 10,000 fresh advances amounting to ₹927.63 crore under the Emergency Credit Line Guarantee Scheme (ECLGS). Sixty seven per cent of eligible accounts claimed the moratorium under the Covid-19 scheme, said the bank’s Managing Director and Chief Executive Officer KV Rama Moorthy.

The Thoothukudi-headquartered bank has reported a 57.6 per cent increase in its net profit for the year ended March 2020 at ₹407.69 crore compared with the year-ago’s profit of ₹258.58 crore.

Sharing details of the performance, Moorthy said: “The total business grew 4.68 per cent to ₹65,061.21 crore (₹62,154.67 crore). The gross and net NPA fell marginally by 0.70 per cent and 0.60 per cent to 3.62 per cent (4.32 per cent) and 1.80 per cent (2.40 per cent), respectively.

The provision coverage ratio rose to 80.75 per cent from 73.6 per cent in 2018-19 fiscal.

“Our thrust on CASA (Current Account and Savings Account) and retail lending will continue. We will leverage on technology and HR for business development and enhancing delivery efficiencies of all services.”