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Tamilnad Mercantile Bank’s net rose by 16.52 per cent to ₹258.58 crore during fiscal 2018-19, compared to the ₹221.92 crore it clocked during the corresponding period of the previous fiscal.
The lender’s operating profit slipped 12.1 per cent to ₹884.24 crore (₹1,005.99 crore) and net and gross NPAs increased to 2.40 per cent (2.16 per cent) and 4.32 per cent (3.60 per cent).
KV Rama Moorthy, TMB’s Managing Director and Chief Executive Officer, said the bank continued to give thrust to priority sector advances such as agriculture, MSME, education, and housing. “These alone constituted 69.21 per cent of ANBC, well above the regulatory requirement of 40 per cent. While advances to the priority sector grew by 15.5 per cent, credit to the MSME sector grew 14.87 per cent, and agricultural advances, at 24.83 per cent of the total advances, was well above the regulatory requirement of 18 per cent.”
CASA grew 5.45 per cent to ₹8,657.71 crore and net interest income was up by ₹20.4 crore at ₹1,230.16 crore (₹1,209.73 crore). Non-interest income, however, dipped to ₹414.31 crore (₹506.12 crore)
Rama Moorthy indicated that the bank would continue to focus on CASA growth by aggressively promoting POS and credit cards and grow its credit, with specific thrust on the retail sector. It will leverage on technology and HR initiatives for enhancing delivery efficiencies.
The bank achieved a total business of ₹62,165.66 crore (up 10 per cent) in fiscal 2018-19, and is targeting to cross ₹76,500 crore in the current fiscal.
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