| Financial Results of the Bank for the third quarter 2022-23 (Q3) |
(Net Profit zoomed by 38%)
Tamilnad Mercantile Bank Ltd (TMB) one of the renowned Old Private Sector Banks, having its Head Quarter in Thoothukudi has a long cherished history of 100+ years of eventful existence with strong fundamentals and an enviable track record of continuous profit making in the industry.
TMB having pan India presence with 511 branches and 12 Regional Offices across 16 states and 4 Union Territories serves more than 5 million delighted customers.
The Board of Directors of Tamilnad Mercantile Bank Ltd took on record the reviewed results of the Bank for the third quarter of FY23 and nine months period ended December 2022 in their meeting held at Chennai on 23.01.2023. Shri. S. Krishnan, Managing Director and CEO of the bank declared results. Chief Financial Officer, General Managers and other senior officials of the Bank were also present at the event.
Bank’s Results at a glance (₹ in Crores)
| Parameters | December 2021 (Q3) | December 2022 (Q3) | Growth YoY |
| CASA (₹) | 11,667 | 12,851 | 10.15% |
| Total Advances (₹) | 31,995 | 34,802 | 8.77% |
| Net Profit (₹) | 202.88 | 279.70 | 37.86% |
| Net Interest Income | 452.76 | 534.27 | 18.00% |
| Gross NPA (₹) | 985.56 | 591.08 | – 40.03% |
| Gross NPA (%) | 3.08% | 1.70% | – |
| Net NPA (₹) | 452.36 | 259.10 | – 42.72% |
| Net NPA (%) | 1.44% | 0.75% | – |
| Provision Coverage Ratio | 83.71% | 89.83% | – |
| ROA | 1.62% | 2.00% | – |
| ROE | 16.38% | 17.14% | – |
| EPS | 14.12% | 17.66% | – |
| CRAR | 18.73% | 24.44% | – |
The total business of the bank at the third quarter ended December 2022 stood at ₹78,242 Crores with a growth rate of 5.69%.
The Bank’s deposit and advance portfolio stood at ₹43,440 Cr and ₹34,802 Cr respectively.
Credit to Priority & MSME Sector:
- The Bank has been giving continued thrust on advances to Priority Sectors like Agriculture, MSME, Education, Housing etc. constituting 79.67% of its ANBC, above the regulatory requirement of 40%.
- The Advances to Priority sector has increased to ₹25,636 Crores (PY ₹23,235 Crores) with a growth rate of 10.33%.
- The Bank’s Advances to Agriculture sector stood at ₹10,620 Crores. The Advances to Agriculture Sector constitute 30.52% of total advances, above the regulatory requirement of 18%.
- Credit to MSME sector has increased to ₹12,870 Crores (PY ₹11,986 Crores) with a growth rate of 7.38%.
Y-O-Y Performance: (Q3FY23 viz-a-viz Q3FY22)
- The Bank’s deposits has increased to ₹43,440 crores (PY same period ₹42,035 crores)
- The Bank’s CASA position has increased to ₹12,851 crores with a growth rate of 10.15%
- The advance level of the Bank has increased to ₹34,802 crores with a growth rate of 8.77%
- The Operating Profit is at ₹404.81 Crores for Q3FY23 as against ₹401.12 Crores for Q3FY22
- The Net Profit is at ₹279.70 crores for Q3FY23 as against Q3FY22 ₹ 202.88 Crores) registering the growth rate of 37.86%.
- The Net Interest Income (NII) has increased to ₹534.27 for Q3FY23 Crores (Q3FY22 ₹452.76 Crores) registering a growth rate of 18%.
- Return on Asset at 2% & Return on Equity at 17.14% (PY 1.62% and 16.38% respectively)
- The Bank’s Net worth increased to ₹6,583 crores (PY ₹4,966 crores) with an absolute rise of ₹1,617 crores registering a growth rate of 32.56%
- The Gross NPA as a percentage to total advances stood at 1.70% and net NPA stands at 0.75%. (PY 3.08% and 1.44% respectively)
- Provision Coverage Ratio of the Bank increased to 89.83% (PY 83.71%)
New initiatives
- Opened two branches during the Q3FY23. We have plans to open another 25 branches before the end of the current fiscal year.
- Tied up with Max life Insurance Company Limited, Bajaj Allianz Life Insurance Company Limited, Chola MS General Insurance Company Limited and Kotak General Insurance Company Limited for insurance products
- The Bank has embarked into various digital tie ups for providing many digital services to our customers in a phased manner during the rest of the fiscal year