You are here: Home » Companies » Results
Business Standard

Tamilnad Mercantile Bank eyes Rs 1,000-crore IPO by Nov-Dec 2021

The lender's FY21 net profit rose 48% to Rs 603 cr

Topics
Tamilnad Mercantile Bank | IPO

Abhijit Lele  |  Mumbai 

TMB
Tamilnad Mercantile Bank

Private lender Tamilnad Mercantile Bank's (TMB) is planning an Initial Public Offering ( IPO) of about Rs 1,000 crore by November-December 2021. The will involve combination of fresh capital plus sale of existing shares.

The shareholders of the unlisted South-based private bank have already given nod for Bank would work file prospectus with Securities and Exchange Board of India, said K V Rama Moorthy, managing director and chief executive, TMB.

The book value of bank is Rs 321 per share and capital adequacy was 18.94 per cent in March 2021, up from 16.74 per cent in March 2020.

Meanwhile, the lender posted 48 per cent rise in net profit at Rs 603.3 crore for financial year ended March 2021 (FY21) as against Rs 407.69 crore in year ended March 2020 (FY20).

It posted 16.52 per cent rise in net interest income ( NII) at Rs 1,537.5 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 porrfolio by 19.38 per cent to Rs 6,496.11 crore.

Rama Moorthy said the bank is looking at 15 per cent growth in advances in FY22.

The deposits grew by 11.27 per cent to Rs 40,970.42 crore in FY21 from Rs 36,825 crore in FY20. It is targeting a growth of 10-12 per cent growth in deposits and increase share of low cost deposits - savings accounts and current accounts - beyound 30 per cent from present 28 per cent, he added.

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 in March 2020.

The Provision Coverage Ratio dipped to 79.53 per cent in FY21 from 80.75 per cent a year ago. In the wake of second Covid wave, the lender made additional standard asset provision of Rs 50 crore.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Tue, April 27 2021. 16:26 IST
RECOMMENDED FOR YOU
.