Total business of the bank during the quarter ending June 30, 2023 stood at Rs 84,300 crore up by 9.40 per cent.
“My overall business growth will be in the range of 12-15 per cent…that is what I aim. Our growth — both in terms of deposits and advances — will be in the range of 12-15 per cent,” Tamilnad Mercantile Bank Managing Director and CEO S Krishnan told reporters here.
The bank had reported slippage of Rs 101 crore during the quarter ending June 30, 2023 while the cash recovery was at Rs 41.75 crore, he said.
On what are the drivers for the rise in net profits, he explained the bank is a prime ‘vannila’ bank and the USP is on the “recovery” and “maintaining asset quality.” “It is due to prudent business both on the liability side and asset side,” he said to a query on increase in the net profit.
As on June 30, 2023 the bank had reported gross NPA at 1.56 per cent as against 1.69 per cent registered in the same quarter of last year while net NPA was at 0.66 per cent in comparison to 0.93 per cent that was registered in the corresponding quarter of last year, he said. Total deposits of the bank as of April-June 2023 quarter stood at Rs 47,008 crore while advances were at Rs 37,292 crore, he said. On the recent spot verification conducted by the intelligence and criminal investigation wing of the Income Tax department at the headquarters of the bank, Krishnan said whatever errors were observed by the IT department have been rectified.
“All the details whatever IT department needs, were given and it has got nothing to do with the financial statements of the bank. I hope this will be closed as early as possible,” Krishnan said.
To a query about the appointment of chairperson, he said the Board is working on it and the proposals would be referred to the approval of the Reserve Bank of India (RBI).
On the expansion front, he said the bank opened six branches in the April-June 2023 quarter of the total 50 branches that have been planned to be set up during the current financial year.
Krishnan said the bank was engaged in tapping digital technology at an outlay of Rs 100 crore and currently finalised the service provider to offer loans through digital medium to micro, small and medium enterprises.
“The purchase order has been given today (to the service provider) and the digital journey for MSME customer will start very shortly,” he said.