Tamilnad Mercantile Bank Limited · NSE:TMB

Tamilnad Mercantile Bank — Q3 FY2023 Earnings Presentation

37 slides from Tamilnad Mercantile Bank's earnings presentation, January 2023

  1. Slide 1: Tamilnad Mercantile

    Tamilnad Mercantile

  2. Slide 2: Disclaimer

    Disclaimer This presentation has been prepared by Tamilnad Mercantile Bank Ltd., (“the Bank”) solely by the Bank for information purposes only. This presentation is not a complete description of the Bank and the information contained herein is only current as of its date and has not been verified by

  3. Slide 3: Agenda

    01 Performance Highlights 02 Key Ratios / Parameters 02 03 Asset Quality Event Business professionals like you connecting. 04 Business Time / Financial Performance 05 Balance Sheet 06 Strategic Partners Reports 07 Branch Network www.tmb.in 3

  4. Slide 4: Shareholders Value-Enhanced (1/2)

    Shareholders Value-Enhanced (1/2) (Annualised) Net Worth 7000 6000 6583 5000 6303 4966 5193 5285 (₹ in Crores) 4000 3000 2000 1000 158 143 143 143 158 0 Capital Reserves & Surplus Book Value per Share Earnings Per Share (EPS) 440.00 20.00 420.00 15.00 * 17.99 17.66 400.00 16.43 15.93 (₹ in Rupees) 4

  5. Slide 5: Shareholders Value-Enhanced (2/2)

    Shareholders Value-Enhanced (2/2) (Annualised) (Annualised) ROA ROE CRAR 2.50% 17.60% 0.50 17.40% 0.45 2.00% 24.58% 0.40 24.44% 17.20% 22.06% 21.67% 17.00% 0.35 1.50% 18.73% 0.30 16.80% 17.41% 2.00% 0.25 1.93% 17.14% 1.83% 16.60% 1.66% 1.00% 1.62% 0.20 16.84% 16.40% 22.98% 22.85% 16.58% 20.44% 0.15

  6. Slide 6: Performance Highlights (Q3FY2023 vis-à-vis Q3FY2022)

    Performance Highlights (Q3FY2023 vis-à-vis Q3FY2022) Q3FY23 Q3FY23 Q3FY23 12,851 43,440 591.08 Q3FY22 Q3FY22 Q3FY22 CASA Deposits 42,035 Gross NPA 11,667 985.56 10.15% 3.34% -40.03% Q3FY23 Q3FY23 Q3FY23 34,802 78,242 259.10 Q3FY22 Q3FY22 Q3FY22 Advances 31,995 Total 74,030 Net NPA 452.36 Business 8.

  7. Slide 7: Key Ratios / Parameters

    01 Performance Highlights 02 Key Ratios / Parameters 02 03 Asset Quality Event Business professionals like you connecting. 04 Business Time / Financial Performance 05 Balance Sheet 06 Strategic Partners Reports 07 Branch Network www.tmb.in 7

  8. Slide 8: Key Ratios (1/2)

    Key Ratios (1/2) (Quarterly) (Annualised) NET PROFIT NIM 300 4.60% 4.54% 4.50% 4.47% 4.50% 250 4.40% 200 4.30% 4.20% 4.10% (₹ in Crore) 280 150 262 4.10% 4.03% 234 227 203 100 4.00% 3.90% 50 3.80% 0 3.70% Q-o-Q Y-o-Y Growth Growth Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 (Q3FY23 (Q3FY23 (3M) (3M) (3M) (3M

  9. Slide 9: Key Ratios (2/2)

    Key Ratios (2/2) (Quarterly) Slippage Ratio Gross NPA NET NPA PCR 0.26% 3.20% 3.08% 91.00% 1.60% 0.24% 1.44% 89.83% 0.23% 3.00% 0.24% 0.23% 1.40% 90.00% 2.80% 88.58% 0.22% 89.00% 88.08% 2.60% 1.20% 88.00% 87.92% 0.20% 2.40% 2.20% 1.00% 87.00% 0.18% 0.19% 2.00% 86.00% 0.80% 0.16% 1.80% 0.95% 0.93% 85

  10. Slide 10: Efficiency Ratios (1/2)

    Efficiency Ratios (1/2) (Annualised) (Annualised) (Annualised) Credit Cost Cost of Funds Cost to Income Ratio Cost of Deposits 0.50% 0.45% 5.00% 4.94% 44.00% 5.00% 4.95% 4.90% 43.58% 4.91% 0.45% 0.43% 4.90% 43.50% 4.90% 0.40% 0.32% 43.16% 0.35% 4.80% 43.00% 4.80% 0.30% 0.27% 4.70% 4.60% 0.25% 42.50%

  11. Slide 11: Efficiency Ratios (2/2)

    Efficiency Ratios (2/2) (Annualised) (Annualised) (Annualised) Yield on Advances Yield of Funds Yield of Investments 9.50% 8.69% 8.68% 6.88% 6.86% 9.48% 9.48% 8.68% 6.86% 9.46% 6.84% 9.44% 8.67% 6.84% 6.84% 6.82% 9.44% 9.45% 9.42% 8.66% 8.65% 6.80% 9.42% 8.65% 8.65% 8.65% 6.78% 9.40% 8.64% 6.76% 6.7

  12. Slide 12: Asset Quality

    01 Performance Highlights 02 Key Ratios / Parameters 03 Asset Quality Event Business professionals like you connecting. 04 Business Time / Financial Performance 05 Balance Sheet 06 Strategic Partners Reports 07 Branch Network www.tmb.in 12

  13. Slide 13: Sector-wise NPA Position

    Sector-wise NPA Position (₹ in crores) Retail Agri MSME Corporate & Others 70 120 600 350 60 100 500 300 50 250 80 400 106 303 514 40 200 62 60 300 54 30 150 52 49 48 40 200 77 20 100 321 312 172 172 169 295 294 144 61 10 20 100 50 56 52 0 0 0 0 (₹ in Crores) Q-o-Q Y-o-Y Growth Growth Q3FY22 Q4FY22

  14. Slide 14: Sector-wise SMA Position as on 31.12.2022

    Sector-wise SMA Position as on 31.12.2022 (₹ in Crores) Retail Agri MSME Corporate & Others 600 140 450 350 120 400 300 500 350 100 250 400 129 300 401 344 307 300 490 80 250 200 60 200 323 150 200 150 40 100 293 73 323 100 100 20 50 96 23 50 123 0 0 0 0 SMA0 SMA1 SMA2 SMA0 SMA1 SMA2 SMA0 SMA1 SMA2

  15. Slide 15: Movement of SMAs

    Movement of SMAs SMA0 SMA1 SMA 2 Total SMA 3.51% 2.89% 2.82% 9.00% 8.04% 3.70% 2.95% 15.00% 13.73% 8.00% 3.28% 2.75% 14.00% 3.50% 2.67% 12.42% 7.00% 6.74% 6.32% 13.00% 12.24% 3.30% 3.42% 2.55% 3.02% 12.00% 6.00% 3.10% 2.35% 11.00% 10.18% 5.00% 2.15% 2.90% 2.26% 10.00% 4.00% 2.70% 1.95% 3.86% 3.59% 2

  16. Slide 16: Movement of SMAs (Y-o-Y)

    Movement of SMAs (Y-o-Y) SMA0 SMA1 SMA 2 Total SMA 3.86% 2.89% 3.90% 3.60% 3.42% 3.00% 10.50% 10.18% 3.85% 3.40% 2.90% 3.80% 2.80% 10.00% 3.20% 3.75% 2.70% 3.00% 2.60% 9.50% 3.70% 2.80% 2.50% 3.65% 2.40% 2.60% 9.00% 3.60% 2.30% 8.41% 3.55% 2.40% 3.59% 2.56% 2.20% 8.50% 3.50% 2.20% 2.10% 2.26% 3.45%

  17. Slide 17: Stressed Assets Movement

    Stressed Assets Movement Branch Network 7.20% 5.97% 6.20% 5.20% 4.32% 4.23% 3.98% 3.97% 4.20% 3.20% 2.20% 1.20% 0.20% Particulars DEC’21 MAR-22 JUN’22 SEP’22 DEC’22 Stressed Assets Ratio 5.97% 4.32% 4.23% 3.98% 3.97% www.tmb.in 17

  18. Slide 18: Movement of NPAs

    Movement of NPAs (₹ in Crores) Particulars Q3FY22 Q4FY22 FY22 Q1FY23 Q2FY23 Q3FY23 Opening Balance of Gross NPA 1045.26 985.56 1084.78 570.92 572.15 593.34 -Cash Recovery 79.39 91.06 309.45 63.30 44.74 42.83 -Upgradation 53.07 51.95 131.38 11.43 9.90 25.95 -Write Off 0.00 320.89 320.89 0.00 0.00 0.0

  19. Slide 19: Sector-wise Slippages Position

    Sector-wise Slippages Position (₹ in Crores) Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Sector (3M) (3M) (3M) (3M) (3M) Retail 7.32 1.07 3.43 3.23 8.56 Agriculture 7.29 0.00 5.44 14.64 17.74 MSME 41.99 48.19 50.85 57.96 40.22 Corporate & Others 16.16 0.00 16.24 0.00 0.00 Total 72.76 49.26 75.96 75.83 66.52

  20. Slide 20: Business

    01 Performance Highlights 02 Key Ratios / Parameters 02 03 Asset Quality Event Business professionals like you connecting. 04 Time Business / Financial Performance 05 Balance Sheet 06 Reports Strategic Partners 07 Branch Network www.tmb.in 20

  21. Slide 21: Business Performance

    Business Performance (₹ in Crores) Q-o-Q Y-o-Y Growth Growth Business Parameters DEC’21 MAR-22 JUN’22 SEP’22 DEC’22 (DEC’22 (DEC’22 Over over SEP’22) DEC’21) a. Savings 8,240 9,375 9,208 9,196 9,019 -1.92% 9.45% b. Current 3,427 4,330 4,038 3,996 3,832 -4.10% 11.82% A. CASA (a+b) 11,667 13,705 13,24

  22. Slide 22: Business Mix

    Business Mix (₹ in Crores) (₹ in Crores) (₹ in Crores) (in %) Total Business 90000 82.00% Business 80.85% DEC’21 MAR-22 JUN’22 SEP’22 DEC’22 80000 80.11% 81.00% Parameters 33748 34877 33823 70000 31995 80.00% 34802 60000 79.00% 78.23% 50000 78.00% Total Deposits 42,035 44,933 43,233 43,136 43440 76.

  23. Slide 23: Business Mix

    Business Mix (₹ in Crores) CASA (₹ in Crores) RAM Vs Corporate 35000 87% 87% 88% 87% 89% 94% 16000 93% 92% 91% 90% 89% 88% 87% 86% 14000 85% 84% 83% 82% 30000 81% 80% 79% 78% 77% 76% 75% 74% 73% 9208 72% 9196 12000 71% 9375 25000 70% 69% 68% 67% 66% 65% 64% 63% 31102 62% 8240 61% 30203 10000 60% 297

  24. Slide 24: Advances Portfolio Mix

    Advances Portfolio Mix (₹ in Crores) Y-o-Y Q3FY23 Growth Particulars DEC’21 MAR-22 JUN’22 SEP’22 DEC’22 (DEC’22 over DEC’21) 11% Gross Advances 31,995 33,748 33,823 34,877 34,802 8.77% 22% 3700 7612 Of which Retail Sector 6,571 6,758 6,853 7,127 7,612 15.84% 37% 12870 Agriculture Sector 9,388 10,023

  25. Slide 25: Restructured Advances

    Restructured Advances (₹ in Crores) Particulars DEC’21 MAR-22 JUN’22 SEP’22 DEC’22 Advances (Gross) 31995.32 33748.17 33822.76 34876.53 34801.61 Restructured Assets 1055.82 1034.30 994.56 948.45 896.36 Of which 1. Standard 924.65 888.42 860.00 795.71 790.51 2. NPA 124.48 99.15 91.14 115.72 91.83 3.

  26. Slide 26: Sector-wise Restructured Accounts

    Sector-wise Restructured Accounts (₹ in Crores) Sector DEC’21 MAR-22 JUN’22 SEP’22 DEC’22 1.Retail 187.85 185.16 181.88 180.42 194.14 2.AGRI 43.19 42.13 41.27 43.40 19.55 3.MSME 479.16 436.55 419.93 393.47 341.55 4.Corporate & Others 345.62 370.46 351.48 331.16 341.12 Total 1055.82 1034.30 994.56 94

  27. Slide 27: Financial Performance

    Financial Performance (₹ in Crores) 3 Months (Y-o-Y) 9 Months (Y-o-Y) Q3FY23 DEC’22 Financial Parameters Q3FY22 Q1FY23 Q2FY23 Q3FY23 over DEC’21 DEC’22 over Q3FY22 DEC’21 Interest Income 959.40 1002.15 996.69 1012.12 5.50% 2847.37 3010.96 5.75% Non-Interest Income 253.96 139.62 144.80 160.76 -36.70%

  28. Slide 28: Revenue Performance

    Revenue Performance (₹ in Crores) (₹ in Crores) Net Interest Income Operating Profit 560 440 540 430 420 426 520 534 410 500 524 509 400 405 480 390 401 488 380 389 460 440 370 374 453 360 420 350 400 340 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 (₹ in Crores) Q-o-Q Y-o-Y

  29. Slide 29: Balance Sheet

    01 Performance Highlights 02 Key Ratios / Parameters 02 03 Asset Quality Event Business professionals like you connecting. 04 Business Time / Financial Performance 05 Balance Sheet 06 Reports Strategic Partners 07 Branch Network www.tmb.in 29

  30. Slide 30: Balance Sheet

    Balance Sheet (₹ in Crores) Liabilities (₹ in Crores) DEC’21 MAR-22 JUN’22 SEP’22 DEC’22 Capital 142.51 142.51 142.51 158.35 158.35 Reserves and Surplus 4966.24 5193.19 5284.90 6302.85 6582.55 Deposits 42035.40 44933.11 43233.60 43136.65 43440.86 Borrowings 0.00 0.00 375.02 279.21 0.00 Other Liabili

  31. Slide 31: Strategic Partners

    01 Performance Highlights 02 Key Ratios / Parameters 02 03 Asset Quality Event Business professionals like you connecting. 04 Business Time / Financial Performance 05 Balance Sheet 06 Strategic Partners Reports 07 Branch Network www.tmb.in 31

  32. Slide 32: Fintech / Business Tie-ups (1/2)

    Fintech / Business Tie-ups (1/2) www.tmb.in 32

  33. Slide 33: Fintech / Business Tie-ups (2/2)

    Fintech / Business Tie-ups (2/2) www.tmb.in 33

  34. Slide 34: Branch Network

    01 Performance Highlights 02 Key Ratios / Parameters 02 03 Asset Quality Event Business professionals like you connecting. 04 Business Time / Financial Performance 05 Balance Sheet 06 Reports Strategic Partners 07 Branch Network www.tmb.in 34

  35. Slide 35: PAN India Branch Network

    PAN India Branch Network www.tmb.in 35

  36. Slide 36: Awards & Accolades

    Awards & Accolades The Bank has bagged the “Best Small Indian Bank” award in the Best Banks survey for the year 2022 done by Business Today-KPMG(BT-KPMG Best Banks Survey). The Bank has won two awards in the name of “Numero Uno Exemplary Award of Par Excellence” from PFRDA for achieving the highest

  37. Slide 37: Thank You

    Tamilnad Mercantile Bank Limited No. 57, Victoria Extension Road, Thoothukudi – 628 002, Tamil Nadu, India Investor Contact Mr.P.A.Krishnan, Chief Financial Officer Mob: 63852 28111 E-mail: cfo@tmbank.in Mr.Prakash Chandra Panda, Company Secretary & Compliance Officer Mob: 96595 23378 E-mail: cs@tmb

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