Tamilnad Mercantile Bank is a private sector established in 1921 and the 102 years old bank which has a PAN India presence with 509 branches all over India and 12 regional offices has hiked interest rates on fixed deposits of less than ₹2 Cr. The new rates are effective as of today, February 10, 2023, according to the bank’s official website. The bank made this announcement in response to the RBI which raised the repo rate by 25 basis points to 6.50 percent on Wednesday. After the modification, the maximum interest rates for fixed deposit customers of Tamilnad Mercantile Bank would be 8% for general customers and 8.50% for senior citizens.
Tamilnad Mercantile Bank FD Rates
On fixed deposits maturing in 7 days to 120 days, the bank is now offering an interest rate of 5.25% and on those maturing in 121 days to less than 1 year, Tamilnad Mercantile Bank will now promise an interest rate of 6%. On a deposit tenor of 300 days, the bank is promising a maximum interest rate of 8% and on a tenor of 1 year, Tamilnad Mercantile Bank will offer an interest rate of 7.25%.
Deposits maturing from above 1 year to less than 2 years will now fetch an interest rate of 7% and those maturing in 2 years to less than 3 years will now fetch an interest rate of 6.75%. On fixed deposits maturing in 3 years to 10 years, the bank is promising a standard interest rate of 6.50%.
Senior citizens will receive an additional interest rate of 0.50%, or 50 basis points, over and above the standard rates on fixed deposits maturing in 300 days to 10 years, as a result, the maximum return they can get is 8.50% from Tamilnad Mercantile Bank by booking their fixed deposit for a tenor of 300 days.
With a growth rate of 5.69%, the bank’s total business at the end of the third quarter in December 2022 was ₹78,242 Crores, while its deposit and advance portfolio were, respectively, ₹43,440 Cr and ₹34,802 Cr in the third quarter of FY23. The Bank’s CASA position has grown by 10.15 percent to ₹12,851 crores, and its operating profit for Q3FY23 reached ₹404.81 Crores compared to ₹401.12 Crores for Q3FY22. The net profit of Tamilnad Mercantile Bank reached ₹279.70 crores for Q3FY23 as against ₹202.88 Crores in the year-ago quarter registering a growth rate of 37.86% YoY.
The Net Interest Income (NII) climbed by 18% to ₹534.27 crores during the third quarter of fiscal year 23 from ₹452.76 crores in the third quarter of fiscal year 22, while the bank’s Return on Asset and Return on Equity both increased to 2% and 17.14%, respectively. With an absolute gain of ₹1,617 crores and a growth rate of 32.56%, the bank’s net worth climbed to ₹6,583 crores in Q3FY23 from ₹4,966 crores in Q3FY22, while the gross NPA as a percentage of total advances stood at 1.70% and the net NPA was at 0.75%.
Tamilnad Mercantile Bank opened two branches in Q3FY23, and plans to open another 25 branches before the current fiscal year is over. The bank also disclosed that it signed partnerships for insurance products during the quarter with Kotak General Insurance Company Limited, Chola MS General Insurance Company Limited, Bajaj Allianz Life Insurance Company Limited, and Max Life Insurance Company Limited.