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Tamilnad Mercantile Bank targets Rs 50,000 crore business by 2013

Saturday, 12 December 2009 - 3:53am IST | Place: Mumbai | Agency: dna

Tuticorin-based TMB, which opened its seventh branch in Mumbai on Friday, currently has 215 branches and 2,300 employees.

Tamilnad Mercantile Bank (TMB) is looking at a total business of Rs 50,000 crore by 2013 through a network spanning 500 branches and 5,000 employees. Tuticorin-based TMB, which opened its seventh branch in Mumbai on Friday, currently has 215 branches and 2,300 employees.

The bank aims to close the current fiscal with total business of Rs 20,045 crore, net profit of Rs 183 crore and a non-performing asset (NPA) level of less than 0.5%,
G Nagamal Reddy, managing director and CEO, said.

As of November-end, its total business stood at Rs 16,747 crore, up 18.67% year on year. Deposits were up 20.97% at Rs 9,774 crore and advances were up 15.58% at Rs 6,973 crore. Net profit stood at Rs 68.47 crore.

Current and savings account (CASA) deposits for the period were up Rs 245 crore compared with Rs 2,051 crore as of March 31. By the end of this fiscal, CASA is likely to account for 24.04% of the total deposits, Reddy said.

TMB has maintained a provision of 88% towards NPAs, well above the Reserve Bank’s stipulation of 70%.  The bank, which had a net worth of Rs 989 crore as on March 31, plans to add as many as 68 branches in a year’s time. “We have applied for permission to RBI in this regard,” Reddy said. Besides Maharashtra, these branches will come up in Bihar, Jharkhand, Chhattisgarh.

In fact, branches have been planned in five new states — Bihar, Chhattisgarh, Haryana, Madhya Pradesh and Dadra Nagar Haveli —  largely with an eye on small and medium enterprises. Special cells for financing the SMEs are also on the cards.

Going forward, TMB plans to introduce a life insurance product in tie-up with an insurance company and also introduce international credit card and online share trading services.

The bank has been in the news for sometime, on account of a dispute between two factions over right to sell shares to non-Nadars. Notably, TMB was set up by the Nadar community to cater to Nadars in 1921.

Reddy said the 16-month dispute has ended with the Madras High Court delivering its final verdict.  “Now our bank is functioning with full fledged Board comprising 10 newly elected directors,” said Reddy. “Currently 70-75% stakeholders are from the Nadar community and bank has no issues if they wish to sell their shares to non-Nadars.”

The bank has decided to hold a board meeting on December 17-18. It has scheduled the 86th and 87th annual general meetings, which could not be held on account of the dispute in the last two years, for January 6.

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