Msg. from the Chairman

• Msg. from the Chairman
• From the CEO's Desk
• Knowing TMB
• Management
• Computerization
• Foreign Exchange
• Financial Highlights
• Future Vision

Tamilnad Mercantile Bank Ltd., established way back in 1921 in the port city of Thoothukudi, is one of the few private sector banks, which have successfully faced the metamorphosis in the banking industry in the country. The Bank has grown from strength to strength recording profits continuously for the past 85 years. The Bank's performance in profit is reflected in the enhanced Shareholders value with earnings per share touching Rs.3719/-.

Performance Highlights - 2006 ~ 2007

The Bank`s financial statement for the year ended March 31, 2007 speaks volumes.

• Operating Profit for the year 2006-2007 was Rs.231.20 crore (increase of 18.98% over last year) up from Rs.194.32 crore for 2005-2006.
• Net Profit of Rs.105.78 crore was higher than that of the previous year at Rs.101.19 crore.
• Net owned funds increased from Rs.656.79 crore to Rs.759.15 crore (increase of 15.58% over last year). Return on Equity stood at 14.94%
• The Board has proposed a dividend of 1000% for the shareholders subject to approval of the members at the Annual General Meeting.
• Capital Adequacy Ratio stood at 16.77% as against the minimum of 9% stipulated by RBI
• Business volume of Rs.10067 crore (previous year Rs.8329 crore), up by 20.87% constitution Deposits of Rs.6020 crore and advances of Rs.4047 crore.
• Deposits increased by Rs.817 crores and stood at Rs. 6020 crores (prev. year Rs. 5203 crores) and recorded a growth of 15.70%.
• Advances increased to Rs.4047 crores from Rs. 3126 crores as on Mar 31, 2006 and recorded a growth of 29.46% as against the industry's reported growth of 28.00%.
• C.D Ratio of the Bank improved from 60% to 67.23%
• Return on Assets at 1.57%.
• Business per employee increased from Rs.358 lacs to Rs.451 lacs
• Profit per Employee increased from Rs. 4.41 Lakh to Rs. 4.76 Lakhs.
• Handled Foreign Exchange Merchant Turnover Rs.3923 crore (Prev. Year Rs. 3076 crore).
• Net NPA was brought down from 2.17% to 0.98%.
• Brought all the 183 branches under FINACLE and achieved 100% networking.
• Anywhere Banking facility extended to all the branches including all the rural branches.
• Servicing about 2 million delighted customers.
• Access to over 12300+ ATMs nationwide
• 50 own ATMs in major cities
• All branches enabled to provide RTGS Facility - Any Bank/Branch Money Transfer.
• Introduced TMB-555, TMB-444 Deposit schemes with competitive rate of interest.
• Two tax savings schemes TMB-Malligai, TMB-Mullai were introduced.
• New loan products viz. TMB-SME credit and TMB-Banana Cultivation under tissue culture were introduced and the total retail advances constituted 18.21% of the total advances.
• During the year tie up arrangement with Franklin Templeton Asset Management Company Ltd. to offer Mutual Fund Services.

VISION FOR THE FUTURE AND PLANS FOR THE CURRENT FINANCIAL YEAR

The vision of the bank is to emerge still stronger with:

• Net Profit of Rs.150 Crores
• Business Volume of Rs. 13000 Crores
• Deposits of Rs.7600 Crores
• Advances of Rs. 5400 Crores and
• Reduce the Net NPAs below 0.50% by March 2008

Judged by the past trends and with the whole hearted co-operation and support of our dedicated staff and executives and invaluable customer support the vision is realistic and achievable.

M.G.M. Maran