The advances level of the bank has increased to Rs 28,236.18 crore with a growth rate of 4.51%, TMB said in a press release.

Private sector lender Tamilnad Mercantile Bank (TMB) has recorded a 57.66% jump in its net profit to Rs 407.69 crore for FY20, against Rs 258.58 crore in the previous fiscal. The bank’s deposits have increased to Rs 36,825.03 crore as compared to Rs 35,136.23 crore, with a growth rate of 4.81%, while the CASA position has increased to Rs 9,518.08 crore with a growth rate of 9.99%. The advances level of the bank has increased to Rs 28,236.18 crore with a growth rate of 4.51%, TMB said in a press release.

The non-interest income of the bank stood at Rs 526.45 crore as compared to Rs 414.31 crore while the net interest income (NII) has increased to Rs 1,319.51 crore from Rs 1,230.16 crore. The bank’s interest income stood at Rs 3,466.11 crore with a 7.49% increase from previous year’s figure of Rs 3,224.46 crore.

The release said the gross NPA as a percentage to total advances reduced to 3.62% from 4.32% and net NPA dropped to 1.80% from 2.40%. The capital adequacy ratio (Basel III) of the bank increased to 16.74% from 16.17%. The provision coverage ratio of the bank stood increased to 80.75% from 73.61%.

The bank has been giving continued thrust on advances to priority sectors like agriculture, MSME, education and housing constituting 68.49% of its adjusted net bank credit (ANBC), above the regulatory requirement of 40%. The advances to priority sector has increased to `18,711.73 crore from `16,933.90 crore, with a growth rate of 10.50%.

The bank’s advances to agriculture sector stood at ?6,993.90 crore which constitutes 25.60% of total advances, above the regulatory requirement of 18%. Credit to MSME sector has increased to Rs 10,706.08 crore as against Rs 10,082.77 crore, logging growth rate of 6.18%.

According to the release, the bank has disbursed 10,005 fresh advances totally to the tune of Rs 927.63 crore under the Emergency Credit Line Guarantee Scheme (ECLGS) during the Covid-19 outbreak. Around 67% of eligible accounts availed the moratorium announced under Covid-19 scheme. Besides, provisions to the tune of Rs 36.19 crore have been made for the standard assets as against the RBI provision of 5% under the Covid-19 scheme.