Money & Banking

TMB Q2 net profit up 60% at ₹241 crore

LN Revathy Coimbatore | Updated on November 20, 2020

Thoothukudi-headquartered Tamilnad Mercantile Bank is taking all steps to carve a niche for itself in the NextGen banking space.

“The business opportunity is huge in new emerging areas such as pharma (which we had not tapped so far in this journey) and towards transforming ourselves digitally,” said KV Rama Moorthy, Managing Director, TMB

The journey has not been smooth for this bank, which is marching towards its 100th year of existence. “Our strength, nevertheless, lies in providing excellent customer service, strong connect and loyalty,” said the TMB MD.

The bank has defied all controversies, and even during the pandemic, managed to emerge stronger by the day. “I would attribute our strength to the team,” Rama Moorthy told Business Line, sharing insights on the bank’s performance during the second quarter of the current fiscal.

The bank clocked a net profit of ₹241.54 crore at the end of the quarter ending September 2020, up 59.9 per cent when compared to the ₹151.07 crore achieved during the corresponding quarter of the earlier fiscal.

Its operating profit was up 32.2 per cent at ₹581.86 crore (₹440.07 crore), and net interest income increased from the year-ago figure of ₹634.69 crore to ₹733.59 crore.

CASA grew close to 16 per cent to ₹10,121.42 crore. Gross and net NPAs slipped to 3.41 per cent (4.91 per cent) and 1.16 per cent (2.40 per cent), respectively.

Total business

The total business of the bank at the end of the first half of the current fiscal was up 9.72 per cent at ₹66,765.27 crore, with advances at ₹29,603.87 crore and deposits at ₹37,161.40 crore.

Conceding that “uncertainty” has now become “certain” in every walk of life, the TMB MD said: “We have to prepare ourselves for this. As a country we can tide over this as well, but a lot would depend of the second and third wave of Covid-19.”

TMB would continue to focus on retail, agriculture and MSME lending. The bank consciously reduced its exposure to corporates over the last three years and has decided not to take additional exposure in infrastructure and power projects.

Last week, the bank celebrated its Founders’ Day to mark the completion of 99 years. On that occasion, certain new initiatives such as WhatApp banking, TMB DigiLobby, automation of the currency chest at Pudukottai, and Rupay select Debit Card were introduced.

Published on November 20, 2020

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