TMB eyes Rs 20,000 cr business

Tuticorin-based Tamilnad Mercantile Bank (TMB) has set a target of Rs 20, 000 crore business by March 2010 from the present Rs 16,000 crore.

Of this, it expects advances to contribute around Rs 8,500 crore and deposits Rs 11, 500 crore, said G Nagamal Reddy, managing director and chief executive officer, TMB.

Speaking to reporters after launching the bank’s debit card, he said CASA (current and savings account) deposits would be increased to Rs 650 crore by December 2010 to reduce the cost of deposits. “It is a positive sign that the cost of deposit has come down from 8.08 per cent last year to 7.45 per cent at present,” he added. Export credit too declined to 7.5 per cent from the existing 8.75.

“We have in excess of Rs 1,000 crore as reserves,” he said.

The bank is also targeting the credit card segment. It currently has around 5,000 cardholders . “We intend to double the credit card holders to increase the non-interest income,” Reddy said.