Tamilnad Mercantile Bank reports net profit of Rs 180.81 crore, with a growth of 95.64%
K V Rama Moorthy
Stepping into their centenary year, the Board of the Thoothukudi(Tuticorin)-based Tamilnad Mercantile Bank (TMB) has revealed the reviewed results for the quarter ended on December 31st, 2020.
The Bank has reported a net profit of Rs.180.81cr, with a growth of 95.64%, when compared to the 2019-20 figure of Rs.92.42cr.
Net NPA, meanwhile, dropped by 52.08 per cent to Rs.270.36 crore from Rs. 564.18 crore, whereas, in percentage terms, it dropped to 0.92 per cent from 2.13 per cent.
Gross NPA dropped 30.69 per cent to Rs 977.88 crore from Rs 1,410.98 crore, in percentage it dropped to 3.24 per cent from 5.16 per cent.
The total business of the bank at the nine-months ended December 2020 stood at Rs 68,101.12 Crores with a growth rate of 8.88 per cent, over the previous year’s 62,544.21cr in the corresponding period.
According to a statement, the bank has been giving continued thrust on Loans to Priority sectors like Agriculture, MSME, Education, Housing etc, constituting 76.57% of its Adjusted Net Bank Credit (ANBC), above the regulatory requirement of 40%.
The bank's advances to the Agriculture sector stood at Rs.7,812.54crores, which is 25.86% of the bank’s advances. In terms of credit to MSME sector, it has increased to Rs.11,893.72cr, from the previous year’s 10,362.56cr.
WION also had an exclusive conversation with K VRama Moorthy, MD & CEO, Tamilnad Mercantile Bank.
WION: The board has revealed that the bank has always posted profits in its 99-year existence. Tell us more about how you make this possible.
K V Rama Moorthy: Historically, this bank has been a regional one - more connected to customers and branch-level connectivity is the key. How strongly we are connected is aptly demonstrated by the rapport that our bank managers share with the customers.
WION: What are some of the significant lessons from over the years?
K V Rama Moorthy: Our learning has been that - come what may, we shouldn’t leave our customer’s relationship. We need to create a confidence level in the customer’s mind that, this bank is almost ready for any of may difficulties. Even on a rainy day, this bank is ready with an umbrella. With that confidence, we can emerge the winner.
WION: Based on your interaction with customers and the overall performance, how do you view the economic recovery?
K V Rama Moorthy: Most customers in the agro sector don’t have any problem. Micro, small and medium industries (MSME) had issues earlier, but are getting back to near-normal. Retail will take another 3 to 6 months, some people who lost their jobs, had a dip in income will pick up in 3 to 6 months.
WION: Kindly tell us about your targets and how far you've come towards achieving them.
K V Rama Moorthy: Rs 72500 crore is the top-line target and we've reached Rs 68,000 crore. We are very confident of posting remaining numbers by March. Also, regarding the bottom line that we projected, very comfortably, we’ll be able to surpass. Gross NPA level, whichever was projected we should be able to maintain.
WION: What are your thoughts on the budget?
K V Rama Moorthy: It is a well-balanced exercise. It has satisfied a good number of people. Overall, it has come under a challenging time. It will help the healthcare, MSME and Agro sector.
