Tamilnad Mercantile Bank’s net profit up by 20 per cent over previous fiscal

R. Vimal Kumar

Plan to open 17 new branches, says Managing Director

Efforts are on to increase ATMs to 150 from 104

Total business volume stands at 13,098.45 crore

Tuticorin: The Tamilnad Mercantile Bank Limited has brought down the net Non Performing Assets (NPA) from 0.98 per cent to 0.36 per cent and gross NPA from 4.54 per cent to 2.23 per cent at the end of the last financial year (2007-08).

G. Narayana Moorthy, Managing Director and Chief Executive Officer of TMBL, told The Hindu that the net profit registered by the bank during last fiscal stood at Rs.125.3 crore, registering an increase of 20 per cent over the previous financial year.

The total business volume of the bank for the period stood at 13,098.45 crore, up by 28.21 per cent from 2006-07.

Of this, advances contributed Rs.5,431.21 crore and deposits Rs.7,667.24 crore.

He said that while the deposits recorded a growth of 27.36 per cent, advances had grown by 29.22 per cent.

The credit-deposit (CD) ratio had improved from 69.68 per cent in 2006-07 to 73.37 per cent in 2007-08.

The ratio of priority sector advances to total advances and agriculture sector advances to total advances stood at 56.84 per cent and 19.34 per cent, respectively, both above the norms set by Reserve Bank of India.

Financial inclusion

He said that about a lakh bank accounts had been opened during the fiscal under financial inclusion project.

Lending to self-help groups registered an increase of 210.52 per cent during 2007-08 vis-À-vis 2006-07.

“We have disbursed credit worth Rs.22.21 crore to SHGs between April 1,2007, and March 31, 2008.”

Likewise, education loan portfolio had increased by 91.05 per cent during last fiscal.

The bank planned to open 17 new branches before the end of the first half of the current fiscal (2008-09).

“All these branches will come up in ‘unbanked’ and ‘under-banked’ areas and in places where minority population are more.”

Similarly, plans were afoot to increase the ATMs to 150 before March 31, 2009. Presently, the bank has 104 ATMs.

“We are taking efforts to bring down the net NPA to 0.1 per cent at the end of this fiscal,” he said.

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