Tamilnad Mercantile Bank Q3 Net Profit Rises By 38% To Rs 280 Crore

The Board of Directors of Tamilnad Mercantile Bank Ltd took on record the reviewed results of the Bank for the third quarter of FY23 and nine months period ended December 2022 in their meeting held at Chennai on 23.01.2023. Shri. S.Krishnan, Managing Director and CEO of the bank declared results. Chief Financial Officer, General Managers and other senior officials of the Bank were also present at the event.

The total business of Tamilnad Mercantile Bank at the third quarter ended December 2022 stood at Rs 78,242 Crores with a growth rate of 5.69%.

The Bank’s deposit and advance portfolio stood at Rs 43,440 Cr and Rs 34,802 Cr respectively.

Credit to Priority & MSME Sector:

The Bank has been giving continued thrust on advances to Priority Sectors like Agriculture, MSME, Education, Housing etc. constituting 79.67% of its ANBC, above the regulatory requirement of 40%.

The Advances to Priority sector has increased to Rs 25,636 Crores (PY ?23,235 Crores) with a growth rate of 10.33%.

The Bank’s Advances to Agriculture sector stood at Rs 10,620 Crores. The Advances to Agriculture Sector constitute 30.52% of total advances, above the regulatory requirement of 18%.

Credit to MSME sector has increased to Rs 12,870 Crores (PY Rs 11,986 Crores) with a growth rate of 7.38%.

Y-O-Y Performance: (Q3FY23 viz-a-viz Q3FY22)

The Bank’s deposits has increased to Rs 43,440 crores (PY same period Rs 42,035 crores)

The Bank’s CASA position has increased to Rs 12,851 crores with a growth rate of 10.15%

The advance level of the Bank has increased to Rs 34,802 crores with a growth rate of 8.77%

The Operating Profit is at Rs 404.81 Crores for Q3FY23 as against Rs 401.12 Crores for Q3FY22

The Net Profit is at Rs 279.70 crores for Q3FY23 as against Q3FY22 Rs 202.88 Crores) registering the growth rate of 37.86%.

The Net Interest Income (NII) has increased to Rs 534.27 for Q3FY23 Crores (Q3FY22 Rs 452.76 Crores) registering a growth rate of 18%.

Return on Asset at 2% & Return on Equity at 17.14% (PY 1.62% and 16.38% respectively)

The Bank’s Net worth increased to Rs 6,583 crores (PY Rs 4,966 crores) with an absolute rise of Rs 1,617 crores registering a growth rate of 32.56%

The Gross NPA as a percentage to total advances stood at 1.70% and net NPA stands at 0.75%. (PY 3.08% and 1.44% respectively)

Provision Coverage Ratio of the Bank increased to 89.83% (PY 83.71%)

New initiatives

*   Opened two branches during the Q3FY23. We have plans to open another 25 branches before the end of the current fiscal year.

*  Tied up with Max life Insurance Company Limited, Bajaj Allianz Life Insurance Company Limited, Chola MS General Insurance Company Limited and Kotak General Insurance Company Limited for insurance products

*   The Bank has embarked into various digital tie ups for providing many digital services to our customers in a phased manner during the rest of the fiscal year

About Tamilnad Mercantile Bank:

Tamilnad Mercantile Bank Ltd (TMB) one of the renowned Old Private Sector Banks, having its Head Quarter in Thoothukudi has a long cherished history of 100+ years of eventful existence with strong fundamentals and an enviable track record of continuous profit making in the industry.

TMB having pan India presence with 511 branches and 12 Regional Offices across 16 states and 4 Union Territories serves more than 5 million delighted customers.