Tamilnad Mercantile Bank eyes 12-15 pc growth in current financial year: MD & CEO

economictimes.indiatimes.com:

Tamilnad Mercantile Bank Ltd has set a target of 12-15 per cent growth on its deposits and advances during the current financial year, its MD and CEO said on Monday. The Tuticorin-headquartered bank, which has been operating for over 100 years, has recorded a 11.53 per cent on its net profit for the April-June 2023 quarter at Rs 261.23 crore as compared to Rs 234.21 crore registered in the same period of last year.

Total business of the bank during the quarter ending June 30, 2023 stood at Rs 84,300 crore up by 9.40 per cent. «My overall business growth will be in the range of 12-15 per cent...that is what I aim.

Our growth — both in terms of deposits and advances — will be in the range of 12-15 per cent,» Tamilnad Mercantile Bank Managing Director and CEO S Krishnan told reporters here. The bank had reported slippage of Rs 101 crore during the quarter ending June 30, 2023 while the cash recovery was at Rs 41.75 crore, he said.

On what are the drivers for the rise in net profits, he explained the bank is a prime 'vannila' bank and the USP is on the «recovery» and «maintaining asset quality.» «It is due to prudent business both on the liability side and asset side,» he said to a query on increase in the net profit. As on June 30, 2023 the bank had reported gross NPA at 1.56 per cent as against 1.69 per cent registered in the same quarter of last year while net NPA was at 0.66 per cent in comparison to 0.93 per cent that was registered in the corresponding quarter of last year, he said.

Total deposits of the bank as of April-June 2023 quarter stood at Rs 47,008 crore while advances were at Rs 37,292 crore, he said. On the recent spot verification conducted by the intelligence and criminal investigation wing of the Income