Informist, Friday, Sep 27, 2024

NEW DELHI – Tamilnad Mercantile Bank Ltd is looking to open 40 new branches across the country going forward with an eye on boosting its presence beyond Tamil Nadu, the lender said in a statement today following the conclusion of its annual general meeting. The Thoothukudi-based bank opened 10 branches in Apr-Jun to take the total number to 562 as of Jun 30. However, 412 of these were in Tamil Nadu.

The bank's growth strategy will focus on micro, small, and medium enterprises, the retail segment, and digital banking services, with a global consultant having been hired to boost the MSME portfolio. As part of its plans, the lender is also planning to set up one MSME hub in each of its 12 regional offices.

In addition, Tamilnad Mercantile Bank also wants to double its deposit growth from current levels. As of Jun 30, the bank's deposits stood at 491.88 bln rupees, up 4.6% on year.

"We also aim to scale our banking system and optimise our capital allocation through careful compliance with regulatory frameworks by embarking on digital transformation," Salee S. Nair, managing director and chief executive officer, was quoted as having said in the statement. The digital transformation strategy of the bank will have a strong focus on enhancing cybersecurity and improving customers' online experience. Nair, who took charge on Aug 29, added that the bank will "continue to protect" its net interest margin at 4%.

The bank's net interest margin in Apr-Jun was 4.12%.

Shares of Tamilnad Mercantile Bank today closed at 450.90 rupees on the National Stock Exchange, down 5.5% from Thursday. End

Reported by Siddharth Upasani

Edited by Akul Nishant Akhoury

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