CHENNAI: Tamilnad Mercantile Bank (TMB), one of the oldest private lenders, reported a rise of 48 per cent in its net profit to Rs 603.3 crore for the financial year which ended in March 2021 (FY21). The bank reported a net profit of Rs 407.69 crore in the last financial year which ended on March 2020.
The bank posted a 16.52 per cent rise in its net interest income at Rs 1,537.53 crore in FY21 from Rs 1,319.51 crore in FY20. Its non-interest income stood at Rs 644.17 crore as against Rs 526.45 crore in FY20, showing a growth of 22.36 per cent.
The advances were up by 11.71 per cent at Rs 31,541.81 crore in March 2021. The agriculture advances increased to Rs 8,645.66 crore from Rs 6,993.90 crore. Its MSME loan book expanded by 18.35 per cent to Rs 12,036.34 crore and retail portfolio by 19.38 per cent to Rs 6,496.11 crore.
The deposits grew by 11.27 per cent to Rs 40,970.42 crore in FY21 from Rs 36,825 crore in FY20. The gross Non-Performing Assets (NPAs) declined to 3.44 per cent in March 2021 from 3.62 per cent in FY20. However, the net NPAs were up at 1.98 per cent in March 2021 from 1.8 per cent from last year.
The Provision Coverage Ratio dipped to 79.53 per cent in FY21 from 80.75 per cent a year ago. In the wake of the second Covid wave, the Thoothukudi headquartered bank has made a provision of Rs 50 crore.
K V Rama Moorthy, managing director and chief executive officer (CEO), said “The bank will focus on consistent growth of current accounts and savings accounts. Credit growth with specific thrust on retail lending. Leveraging technology and HR for business development,” The bank will turn 100 this year and it has decided to come out with an initial public offering (IPO) soon.