Tamilnad Mercantile Bank records Net Profit of Rs 408 crore in FY20
Tamilnad Mercantile Bank records Net Profit of Rs 408 crore in FY20
Tamilnad Mercantile Bank (TMB), a lender in private sector, has reported its impressive performance for fiscal year 2019-20 along with many improvements in asset and growth in profits.
For the year ended March 31, 2020, the net profit of bank has increased by 58% to Rs 408 crore, as compared with Rs 259 crore in the previous fiscal year 2018-19, which was attributed to the increase in operating profit.
Operating profit increased by 13% to Rs 995 crore. The net interest income (NII) is relatively high at Rs 1,320 crore. Interest income increased by 7% to Rs 3,466 crore while non-interest income increased by 27% to Rs 526 crore, compared with Rs 414 crore in the same period last year.
In addition, advances and deposits of the bank increased by approximately 5% to Rs 28,236 crore (Rs 27.018 crore in FY 2018-19) and Rs 36,825 crore (Rs 35,136 crore in FY 2018-19) respectively. The CASA increased by 10% to Rs 9,518 crore (Rs 8,654 crore in FY 2018-19).
According to the release, the gross NPA of the company fell from 4.32% as of March 31, 2019 to 3.62% as of March 31, 2020. On the other hand, the net NPA fell from 2.40% to 1.80%. The bank’s provision coverage ratio increased from 73.61% to 80.75% as compared to previous fiscal year.
A statement has said that the Tamilnad Mercantile Bank has continued to provide loans to priority areas such as education, agriculture, housing, micro, small and medium enterprises, accounting for 68.49% of its adjusted net bank loans which is higher than 40% of regulatory requirements.
In fiscal year 2019-20, loans in priority areas increased to Rs 18,712 crore (Rs 16,934 crore in FY 2018-19), an increase of 10.50%. The loan to the agricultural sector was Rs 6,994 crore whereas the loan to the MSME sector increased by 6% to Rs 10,706 crore (Rs 100,083 crore in FY 2018-19).
Apart from above profits and growth, Mr. K. V. Rama Moorthy, the bank’s managing director and chief executive officer, has informed that the bank is planning a series of technological initiatives to be implemented in the country during current fiscal year. These technological initiatives include the establishment of more than 50 e-lobbies and vigorously promoting mobile and Internet Bank business.
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Tamilnad Mercantile Bank Ltd. (TMD) is one of the biggest commercial banks and headquartered in Thoothukudi, Tamil Nadu, India. TMB was established in 1921 as Nadar Bank at the time, but was renamed Tamilnad Mercantile Bank in November 1962 to expand its appeal beyond the Nadar community.
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