Thoothukudi-based Tamilnad Mercantile Bank (TMB) has lined up a long-term roadmap to boost its micro, small, and medium enterprises (MSME) portfolio, which includes establishing MSME hubs, expanding its branch network, and bringing in global consultancy firm McKinsey to develop its MSME strategy.
During the first quarter of the current financial year, the share of the retail, agriculture, and MSME segment in its portfolio increased to 92 per cent from 90 per cent. In actual terms, it grew by 12.03 per cent to Rs 37,614 crore. Of this, the share of MSME alone comes to around 35 per cent. A source told Business Standard that the bank has engaged McKinsey as its consultant to boost the sector with innovative solutions and improved lending capabilities.
In its 102nd Annual General Meeting (AGM) at its headquarters in Thoothukudi on Friday, the bank highlighted its continued focus on growth and transformation, laying out a comprehensive plan for expansion and digitalisation to drive future growth.
As per the strategy, TMB is planning to open 40 new branches across various regions, expanding its footprint beyond Tamil Nadu, with a special focus on the MSME sector, retail growth, and digital banking services. In addition, eight MSME hubs have been established, with plans to introduce one hub in each of the 12 regional offices. In line with its growth strategies, TMB is targeting a significant increase in deposit growth, aiming to double its current growth levels.
Salee S Nair, managing director and chief executive officer, Tamilnad Mercantile Bank, said, “At TMB, we are committed to accelerating growth through collaboration, excellent customer service, compliance, and risk management. We also aim to scale our banking system and optimise our capital allocation through careful compliance with regulatory frameworks by embarking on digital transformation. Our goal is to create a more agile, customer-centric bank, enhancing services while safeguarding financial stability.”
In the coming year, TMB will focus on expanding retail and MSME portfolios. Alongside, the bank’s digital transformation strategy is a key growth driver, with a strong emphasis on enhancing cybersecurity and improving customer experience through online banking platforms.
The bank will continue to maintain its net interest margin (NIM) at 4 per cent, with initiatives in place to optimise capital allocation and enhance operational efficiency, said Nair. Meanwhile, Vincent Menachery Devassy has taken charge as the new executive director of TMB. Devassy assumed office on Friday with a commitment to drive operational excellence at the bank.
First Published: Sep 27 2024 | 6:07 PM IST
