The operating profit of Tamilnad Mercantile Bank has increased by 12.57 per cent to Rs. 214.22 crore during the six months ended September 30, 2011, from Rs. 190.30 crore on year in the year-ago period.

With strong growth and loan portfolio, the net profit has increased to Rs. 115.21 crore from Rs. 111.39 crore with a marginal increase of 3.43 per cent, A.K. Jagannathan, Managing Director and CEO, said in a statement.

Due to provision for second option for pension, depreciation on investments, provisions for higher non-performing assets and provision of two per cent on restructured standard accounts, the achievement was possible.

Net interest income up

Net interest income rose by 22.40 per cent on year-on-year basis.

Net Interest Margin has also increased from 4.01 per cent to 4.05 per cent.

Gross NPA declined from 1.67 per cent to 1.58 per cent while net NPA has increased from 0.54 percent to 0.66 per cent.

Deposits grew by 23.79 per cent from Rs. 11,708 crore to Rs. 14494 crore and advances by 30.43 per cent from Rs. 8,638 crore to Rs. 11,266 crore.

The board has approved the payment of an interim dividend of Rs. 900 per share.

The bank has also signed an memorandum of understanding and entered in to corporate agent agreement with LIC of India for selling its insurance policies under the Bancassurance model.

Plans are also afoot to increase the number of ATMs to 300 by March 2012, the statement added.

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