Tamilnad Mercantile Bank net profit grows 57.7% to Rs 408 cr in FY20

Tamilnad Mercantile Bank Limited (TMB) has posted 57.7 per cent growth in net profit at Rs 407.69 crore in 2019-20 from Rs 258.58 crore the previous year. Total business grew 4.7 per cent to Rs 65,061 crore from Rs 62,154.67 crore.

Gross NPAs of the bank came down 12.6 per cent to Rs 1,020.98 crore, or 3.62 per cent of gross advances, from Rs 1168.11 crore (4.32 per cent) the previous year. Net NPAs were down 21.85 per cent to Rs 497.47 crore (1.80 per cent) in FY 20, as compared to Rs 636.54 crore (2.40 per cent).

The bank has been giving continued thrust on advances to priority sectors like agriculture, MSME, education and Housing, constituting 68.49 per cent of its Adjusted Net Bank Credit (ANBC), above the regulatory requirement of 40 per cent. Its deposits rose to Rs 36,825.03 crore (Rs 35,136.23 crore the previous year) up 4.81 per cent.

The lender's net worth rose to Rs 3,980 crore (Rs 3,618 crore during previous year) with absolute rise of Rs 362 crore registering a growth rate of 10.01 per cent.

It has made 10,005 fresh disbursements worth Rs 927.63 crore under Emergency Credit Line Guarantee Scheme (ECLGS) during Covid-19 pandemic. Around 67 per cent of eligible accounts availed the moratorium announced under Covid-19 scheme. Provisions amounting to Rs 36.19 crore have been made for standard assets as against the RBI provision of Rs 7.01 crore (5 per cent) under the Scheme, it added.