Tamilnad Mercantile Bank Ltd (TMB) has reported a 60 per cent jump in net profit to Rs 241.54 crore during the half year ended September 2020, from Rs 151.07 crore during the same period last year.
The total business of the bank for the half-year ended September 2020 was up 9.72 per cent at Rs 66,765.27 crore. Its deposits and advances stood at Rs 37,161.40 crore and Rs 29,603.87 crore respectively.
Gross NPA dropped 25 per cent to Rs 1,010.53 crore from Rs 1,346.65 crore, in per centage dropped to 3.41 per cent from 4.91 per cent. Bank's provision coverage ratio increased to 86.92 per cent from 75.77 per cent.
Net NPA dropped by 46.24 per cent to Rs 335.61 crore from Rs 624.29 crore, while in per centage terms it dropped to 1.16 per cent from 2.40 per cent.
The bank is targeting to close the fiscal with total business in excess of Rs 72,500 crore, deposits of over Rs 40,500 crore and advances in excess of Rs 32,000 crore. The lender expects its CASA to cross Rs 10,800 crore and is targeting a net profit of Rs 480 crore for the whole fiscal.
The bank has been laying great emphasis on advances to priority sectors like agriculture, MSME, education and housing, which constitute 75.64 per cent of its adjusted net banking credit (ANBC), and are above the regulatory requirement of 40 per cent. The advances to priority sector has increased to Rs 20,477.05 crore (previous year Rs 17,442.95 crore) with a growth rate of 17.39 per cent.
Tamilnad Mercantile Bank’s advances to the farm sector stood at Rs 7,490.31 crore, constituting 27.67 per cent of total advances, and above the regulatory requirement of 18 per cent. Credit to MSME sector rose to Rs 11,674.62 crore (previous year Rs 10,241.72 crore) with a growth rate of 13.99 per cent.