Financial Results of the Bank for the year 2020-21

Tamilnad Mercantile Bank Limited (TMB) one of the premier Old Private Sector Scheduled Commercial Banks, having Head Quarters in Thoothukudi has a long cherished history of more than 99 years of successful banking with strong fundamentals and a record of continuous profit making in the industry.

TMB having pan India presence with 509 branches and 12 Regional Offices across 16 states and 4 Union Territories is serving more than 4.50 million delighted customers. The bank is having 1132 ATMs, 47 e-lobbies and 260 Nos. of Cash Recycler Machines.

The Board of Directors of the Bank adopted the audited results of the Bank for the financial year ended 31.03.2021 in their meeting held at Thoothukudi on 27.04.2021. In the presence of Board of Directors of the Bank, Shri K.V. Rama Moorthy, Managing Director and CEO of the bank has declared the financial results of the Bank for the year 2020-21. General Managers of the Bank were also present at the event.

 

 Bank’s Results at a glance                                                                (₹ in Crores)

 

 

Parameters 2020-21 2019-20 Growth (%)
Total Deposits (₹) 40,970.42 36,825.03 11.26
Total Advances (₹) 31,541.03 28,236.18 11.70
Total Business (₹) 72,511.45 65,061.21 11.45
CASA (₹) 11,685.27 9,518.05 22.77
Operating Profit (₹) 1,202.04 995.05 20.80
Net Profit (₹) 603.33 407.69 47.99
Gross NPA (₹) 1,084.78 1,020.98 6.25
Gross NPA (%) 3.44 3.62 –  4.97
Net NPA (₹) 613.82 497.47 23.39
Net NPA (%) 1.98 1.80 10.00
Capital Adequacy Ratio –

Basel III (%)

18.94 16.74 13.14
Capital Adequacy Ratio –

Basel II (%)

18.96 16.76 13.13
Provision Coverage Ratio (%) 79.53 80.75 -1.51

 

Board has announced Interim Dividend of 50% i.e. ₹ 5 per share

 

Credit to Priority & MSME Sector:

  • The Bank has been giving continued thrust on advances to Priority Sectors like Agriculture, MSME, Education, Housing etc and the same is constituting 79.06% of its Adjusted Net Bank Credit (ANBC) well above the regulatory requirement of 40%.
    • The Advances to Priority sector has increased to ₹22,540.97Crores (PY

₹18,711.73 Crores) with a growth rate of 20.46%.

  • The Bank’s Advances to Agriculture sector stood at ₹8,645.66 Crores. The Advances to Agriculture Sector constitute 30.33% of total advances, above the regulatory requirement of 18%.
  • Credit to MSME sector has increased to ₹12,036.34 Crores (PY ₹10,169.86 Crores) with a growth rate of 35%.

Y-O-Y  Performance:

  • The Bank’s deposits increased to ₹40,970.42 crores (PY ₹36,825.03 crores) with a growth rate of 11.27% whereas the average growth was 9.39%.
  • The Bank’s CASA position has increased to ₹11,685.27 crores with a growth rate of 22.77% and the average growth was 37%.
  • The advance level of the Bank has increased to ₹31,541.81 crores with a growth rate of 11.71% and the average growth was 98%.
  • Agriculture advances increased to ₹8,645.66 crores (PY ₹6,993.90 crores) with a growth rate of 23.62%
  • MSME advances increased to ₹12,036.34 crores (PY ₹10,169.86 crores) with a growth rate of 18.35%
  • Retail advances portfolio increased to ₹6,496.11 crores (PY ₹5,441.62 crores) with a growth rate of 38%
  • Non-interest income stood at ₹644.17 crores (PY ₹526.45 crores) with an increase rate of 36%
  • Operating expenses stood at ₹979.66 crores (PY ₹850.91 crores) with an increase rate of 13%
  • The Operating Profit is at ₹1202.04 Crores (PY ₹995.05 Crores) with a growth rate of 20.80%
  • The Net Profit is increased from ₹ 407.69 crores to ₹ 603.33 crores with a growth rate of 47.99%
  • The Net   Interest   Income   (NII)   has   increased   to         ₹1,537.53Crores            (PY

₹1,319.51 Crores) with a growth rate of 16.52%

  • The Bank’s Net worth increased to ₹4580 crores (PY ₹3,980 crores) with absolute rise of ₹600 crores registering a growth rate of 15.08%
  • Interest Income stood at ₹3,609.05 Crores with an increase from previous year figure of ₹3,466.11 Crores (Increase by ₹142.94 Crores @ 12%)
  • The Interest Expenditure has decreased from the level of ₹2,146.60 Crores to

₹2,071.52 Crores (decrease by ₹75.08 Crores @ (-3.50%).

  • The Gross NPA as a percentage to total advances reduced to 3.44% (PY 3.62%) and Net NPA stands at 1.98% (PY 80%).
  • NPA and Restructured advances of the Bank is only 93%
  • The Capital Adequacy Ratio (Basel III) of the bank increased to 18.94% (PY 16.74%)