For Tamilnad Mercantile Bank (TMB), growth will be driven by micro/small enterprises, retail and trader segments and mid-corporates in a limited way, said HS Upendra Kamath, Managing Director and Chief Executive of the bank.
In 2015-16, the bank recorded a net profit growth of 6 per cent to ₹402.16 crore from ₹379.40 crore in the previous fiscal (FY15).
Total business rose 17.70 per cent to ₹52,946.59 crore (₹44,985.91 crore in FY15). The bank has set a business target of ₹60,000 crore for the current fiscal.
The new board, which assumed charge in March this year, has declared 500 bonus shares for every shareholder. “This would involve a transfer of about ₹120-130 crore from reserves to equity. Such bonus shares have already been issued to around 4,000 of the 18,000-odd shareholders,” Kamath said.
The book value of the share has risen from ₹91,203/share last year to ₹1.03 lakh this year. The net worth has risen to ₹2,948.54 crore from ₹2,594.31 crore a year ago. Deposits grew 18.40 per cent to ₹30,368.88 crore (₹25,649.86 crore) and advances by 16.77 per cent to ₹22,577.71 crore (₹19,335.95 crore). Net non-performing assets (NPAs) rose to ₹199.90 crore from ₹128.96 crore, up from 0.67 per cent to 0.89 per cent of total advances.
IPO plans On the bank’s plans to float an initial public offering (IPO), Kamath said: “It is true that it has not become a reality. But this will not affect the bank, as it is adequately capitalised for the present and can take care of growth for the next two-three years.
“IPO, of course, is one way of raising capital, but there are other ways to raise resources as well. As of now, IPO does not seem to be on the anvil.”