Private sector lender Tamilnad Mercantile Bank (TMB) is arranging to raise Rs1,000 to 1,300 crore via its planned initial public supplying (IPO), which is probably to hit the market place by November. The bank, amongst the handful of nevertheless unlisted, will present to sell shares by the current investors apart from fresh problem of shares.
K V Rama Moorthy, MD & CEO of Tamilnad Mercantile Bank, told media persons via virtual mode on Tuesday that work had been progressing to file the paper with the Securities and Exchange Board of India (Sebi).
“We will be filing the draft prospectus with the market regulator within the next eight to 10 weeks. Post-issue, the dilution will be about 10%. It might be a mix of offer for sale (OFS) and fresh issue of shares,” he mentioned. Refusing to divulge the finer facts relating to the problem, Moorthy mentioned it was also early to speak about the present value, and the ratio among OFS and fresh problem. The bank would use the proceeds to expand its branch network from the present 509 to 650.
“During the current fiscal, it would add 66 branches and the rest in the next fiscal. Though TMB does not have required licences to open new branches as of now, it had already identified 28 locations to open branches and have done some spade work,” he mentioned.
On the methods for the FY 2021-22, Moorthy mentioned there would be elevated thrust on constant CASA development, credit development with precise concentrate on retail lending. The bank will leverage technologies for business enterprise improvement and to improve delivery efficiencies of all banking services.
The Tuticorin-based, old-economy bank, which is into its centenary year, on Tuesday posted 48% development in its net profit for the fiscal ended March 31, 2021, to Rs 603 crore, owing to various things such as lesser provisioning, enhance in advances and revision of interest prices, amongst other individuals. For FY21, the net interest earnings (NII) has elevated to Rs 1,537.53 crore as against Rs 1,319.51 crore, with a development price of 16.52%. The interest earnings of the bank stood at Rs 3,609.05 crore with a 4.12% enhance from prior year’s figure of Rs 3,466.11 crore.
The gross NPA as a percentage to total advances decreased to 3.44% (3.62%) and net NPA stood at 1.98% (1.80%). The NPA and restructured advances of the bank was only at 3.93%, he mentioned. Provision coverage ratio was at 79.53% (80.75%) and the bank has made added common asset provision (Covid- II wave) of Rs 50 crore.
The capital adequacy ratio (Basel III) of the bank elevated to 18.94% (16.74%). The bank’s deposits elevated to Rs 40,970.42 crore (Rs 36,825.03 crore) with a development price of 11.27% whereas the typical development was 9.39%. The CASA position has elevated to Rs 11,685.27 crore with a development price of 22.77% and the typical development was at 18.37%. The advance level of the bank has elevated to Rs 31,541.81 crore with a development price of 11.71% and the typical development was at 9.98%.