TAMILNAD MERCANTILE BANK LIMITED UNLISTED SHARE
About Tamilnad Mercantile Bank Limited
Tamilnad Mercantile Bank Limited is a leading private sector bank in South India. It was started under the guidance of Nadar Business Community and was established in 1921 as “The Nadar Bank Limited”. Then in 1962, its name was changed to “Tamilnad Mercantile Bank Limited”.
In 1947, the bank had only branches. But today, the Bank has 509 full-fledged branches, 12 regional offices, 11 Extension Counters, 6 Central Processing Centres, 1 service branch, 4 currency chests, and 1151 ATMs.
It was the first private sector bank to introduce computerization for branch-level operations. Tamilnad Mercantile Bank Limited opened its first fully computerized branch at Tuticorn in December 1984. As of today, all the 509 branches are computerized and interconnected.
INCORPORATION DETAILS
CIN | U65110TN1921PLC001908 |
Registration Date | 11 May 1921 |
Category / Sub-Category of the Company | Public Company Limited by Shares |
Address of the Registered office and contact details | 57, V.E. Road, Thoothukudi, Tamil Nadu – 628 002 |
PARTICULARS OF SUBSIDIARY AND ASSOCIATE COMPANIES
TAMILNAD MERCANTILE BANK LIMITED does not have any Subsidiary or Associate companies.
BOARD OF DIRECTORS
Thiru K.V. Rama Moorthy
Thiru A. Niranjan Sankar
Thiru S.R.Ashok
Thiru P.C.G. Asok Kumar
Thiru C.Chiranjeeviraj
Tmt. S. Ezhil Jothi
Thiru N. Gopal
Thiru B.S. Keshava Murthy
Thiru K. Nagarajan
Thiru D. N. Nirranjan Kani
Thiru B.Prabaharan
Thiru S B Suresh Kumar
Thiru B. Vijayadurai
PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY
Name and Description of main products/services | % to total turnover of the Company |
Banking | 100% |
TAMILNAD MERCANTILE BANK LIMITED UNLISTED SHARE DETAILS
Total Available Shares: | 142,511,454 |
Face Value: | Rs. 10 Per Equity Share |
ISIN: | INE668A01016 |
PAN No. | AAACT5558K |
Lot Size: | 50 Shares |
Last Traded Price: | Rs. 690 |
Market Cap: | Rs. 9833.29 Crore |
INDUSTRY OUTLOOK
According to the Reserve Bank of India, India’s banking sector is sufficiently capitalized and well regulated. The financial and economical conditions of India are better than any other developing country in the world. The Indian Banking system consists of 12 Public Sector Banks, 22 Private sector Banks, 46 Foreign banks, 56 regional rural banks, 1458 urban cooperative banks, and 96000 rural cooperative banks. In September 2020, India had 2,10,049 ATMs and is expected to increase to 4,07,000 by 2021.
From FY 2016-20, deposits grew at a CAGR of 13.93% and reached US$ 1.93 trillion by FY 2020. In the past few years, the Indian banking industry has seen a rollout of innovative banking models like payments and small finance banks. The digital payments system in India has evolved. India’s Immediate Payment Service (IMPS) is the only system at level five in the Faster Payments Innovation Index (FPII).
FY 2020-21 has been a mixed bag for the Indian banking industry. Credit growth has remained subdued, but NPAs and stressed assets reduced significantly. In the second half of FY 2020-21, the credit growth picked up marginally.
Private banks will be playing a crucial role in the growth of the banking sector in India. However, currently, the Indian banking sector is dominated by Public sector banks.
Increased spending in Infrastructure, speedy execution of projects, and continuation of reforms are expected to provide further growth of the banking sector in India. All this will directly improve the bank’s business, as businesses will turn to banks for their credit needs fulfillment.
KEY FINANCIALS OF TAMILNAD MERCANTILE BANK LIMITED(In Rs. Crores)
Particulars | 2020 | 2019 | 2018 | 2017 |
Total Business | 64,540.79 | 61,624.19 | 56,197.05 | 54,162.47 |
Advances | 27,715.76 | 26,487.94 | 23,768.72 | 21,972.32 |
Deposits | 36,825.03 | 35,136.25 | 32,428.33 | 32,190.15 |
Income | ||||
Interest Earned | 3,466.11 | 3,224.46 | 3,250.49 | 3,380.96 |
Other Income | 526.42 | 414.34 | 506.12 | 430.51 |
Total Income | 3,992.53 | 3,638.80 | 3,756.61 | 3,811.47 |
Expenses | ||||
Interest Expended | 2,146.59 | 1,994.30 | 2,040.76 | 2,230.15 |
Operating expenses | 850.91 | 760.23 | 709.86 | 705.57 |
Provisions and Contingencies | 587.33 | 625.69 | 784.09 | 559.08 |
Total Expenditure | 3,584.84 | 3,380.22 | 3,534.70 | 3,494.80 |
Profit for the Year | 407.69 | 258.58 | 221.92 | 316.66 |
Profit brought forward | 57.20 | 36.04 | 23.83 | 2.71 |
Total Profit | 464.89 | 294.62 | 245.74 | 319.37 |
Some other Important Financial Parameters
Particulars | 2020 | 2019 | 2018 | 2017 |
CASA | 25.85% | 24.64% | 25.32% | 23.23% |
Return on Equity | 10.73% | 7.36% | 6.70% | 10.27% |
Net interest margin | 3.64% | 3.65% | 3.61% | 3.48% |
Gross NPA | 3.62% | 4.32% | 3.60% | 2.91% |
Net NPA | 1.80% | 2.40% | 2.16% | 1.74% |
BALANCE SHEET OF TAMILNAD MERCANTILE BANK LIMITED (In Rs.Crores)
Particulars | 2020 | 2019 |
CAPITAL & LIABILITIES : | ||
Capital | 142.51 | 142.51 |
Reserves & Surplus | 3,837.13 | 3,475.74 |
Deposits | 36,825.03 | 35,136.25 |
Borrowings | 324.00 | 0.00 |
Other Liabilities and Provisions | 1,630.12 | 1,778.29 |
Total | 42,758.80 | 40,532.80 |
ASSETS : | ||
Cash and balances with Reserve Bank of India | 1,414.41 | 1,735.34 |
Balances with Banks and Money at Call and Short Notice | 2,322.14 | 1,185.01 |
Investments | 9,467.33 | 9,106.59 |
Advances | 27,715.76 | 26,487.94 |
Fixed Assets | 128.45 | 138.38 |
Other Assets | 1,710.70 | 1,879.53 |
Total | 42,758.80 | 40,532.80 |
Contingent Liabilities | 7,309.62 | 7,204.10 |
Bills for Collection | 797.50 | 822.21 |
PERFORMANCE OF THE COMPANY
Interest Earned by bank increased by 7.49% from Rs. 3,224.46 Crores in FY 2019 to Rs. 3,466.11 Crores in FY 2020.
Total Business increased by 4.73% in FY 2020 to Rs. 64,540.79 Crores from Rs. 61,624.19 Crores in FY 2019.
Advances and Deposits also improved by 4.64% and 4.81% respectively in FY 2020. Advances for FY 2020 were Rs. 27,715.76 Crores and Deposits for FY 2020 was Rs. 36,825.03 Crores.
Interest Expended also increased by 7.64% from Rs. 1,994.30 Crores in FY 2019 to Rs. 2,146.59 Crores in FY 2020.
Profit for the Year of Tamilnad Mercantile Bank Limited has risen by 57.67% from Rs. 258.58 Crores in FY 2019 to Rs. 407.69 Crores in FY 2020.
CASA ratio of banks increased from 24.64% in FY 2019 to 25.85% in FY 2020.
Return on Equity for FY 2020 was 10.73% as against 7.36% in FY 2019
Net NPA of the bank lowered from 2.40% in FY 2019 to 1.80% in FY 2020, showing the improvement in asset quality of the bank.
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