Tamilnad Mercantile Bank Limited · NSE:TMB
Tamilnad Mercantile Bank — Q4 FY2024 Earnings Presentation
45 slides from Tamilnad Mercantile Bank's earnings presentation, Apr 22, 2024
Slide 1: Filing cover letter to stock exchanges
Secretarial Section Head Office, 57- V.E. Road, Thoothukudi – 628 002. ☏: 0461-2325136 e-mail : secretarial@tmbank.in CIN: L65110TN1921PLC001908 Ref.No.TMB.SE.17/2024-25 22.04.2024 The Manager, The Manager, National Stock Exchange of India Ltd, Bombay Stock Exchange limited, Exchange Plaza, 5th Floo
Slide 2: Investor Presentation Q4FY2024
Slide 3: 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
Slide 4: Savings Portfolio Crosses 10,000 Cr
Savings Portfolio Crosses ~ 10,000 = We thank our beloved Customers
Slide 5: Table of contents
Table of contents Performance Highlights Performance Highlights Strategic Partners Key Ratios / Network Expansion Parameters Asset Quality External Ratings Business / Balance Sheet Financial Performance www.tmb.in 4
Slide 6: Performance Highlights
Performance A Highlights
Slide 7: Performance Highlights
Performance Highlights Highest ever Net Profit ₹1,072CR Highest ever Interest Income ₹4,848CR Highest ever Net Interest Income ₹2,151CR www.tmb.in 6
Slide 8: Performance Highlights for the FY2024
Performance Highlights for the FY2024 Total Business has increased to ₹89,485 crore from ₹85,348 crore Y-o-Y Book value of share has increased to ₹500 from ₹438 Y-o-Y Net profit has surged to ₹1,072 crore from ₹1,029 crore Y-o-Y Interest Income has improved to ₹4,848 crore from ₹4,081 crore Y-o-Y To
Slide 9: Performance Highlights Q4FY24 vis-à-vis Q4FY23
Performance Highlights Q4FY24 vis-à-vis Q4FY23 ₹14,676 Cr ₹89,485 Cr 31.03.2024 31.03.2024 ₹13,736 Cr ₹85,348 Cr 31.03.2023 TOTAL 31.03.2023 BUSINESS CASA FY2024 ₹39,970 Cr ₹36,484 Cr RAM 31.03.2024 31.03.2024 ₹37,582 Cr ADVANCES ₹32,760 Cr 31.03.2023 31.03.2023 www.tmb.in 8
Slide 10: Shareholders Value-Enhanced (Y-o-Y)
Shareholders Value-Enhanced (Y-o-Y) (₹ in Crores) (in ₹) (in ₹) NET WORTH BOOK VALUE OF SHARE EPS 8000 550 70 7921 68.06 67.70 500 7000 500.23 60 6928 450 57.67 437.53 6000 400 50 374.41 350 5336 5000 40 42.34 300 321.38 4580 4000 279.25 3980 250 30 3000 28.61 200 150 20 2000 100 1000 10 50 0 0 0 ww
Slide 11: Key Ratios / Parameters
Key Rati os / won Parameters Bank Ltd /N/
Slide 12: Key Ratios / Parameters (Y-o-Y) (1/2)
Key Ratios / Parameters (Y-o-Y) (1/2) (₹ in Crores) (₹ in Crores) (₹ in Crores) NET PROFIT OPERATING PROFIT NET INTEREST INCOME CAPITAL ADEQUACY % 1200 1800 2500 (NII) 1600 1000 29.37% 2000 1072 1400 1573 2151 1029 1527 2094 1482 800 1200 31.00% 1815 822 1500 1202 1000 1538 600 29.00% 995 800 1320 2
Slide 13: Key Ratios / Parameters (Y-o-Y) (2/2)
Key Ratios / Parameters (Y-o-Y) (2/2) (Annualised) (Annualised) (Annualised) 1.97% ROA % ROE % NIM % 4.46% 2.15% 20.00% 1.84% 4.70% 16.78% 16.58% 19.00% 1.66% 1.95% 18.00% 14.44% 4.50% 4.10% 13.99% 1.75% 17.00% 16.00% 4.30% 1.34% 4.11% 1.55% 15.00% 3.77% 4.10% 14.00% 10.73% 3.64% 1.35% 0.99% 13.00%
Slide 14: Key Ratios / Parameters (Q-o-Q)
Key Ratios / Parameters (Q-o-Q) (₹ in Crores) Parameters Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Net Profit 253 261 274 284 253 Operating Profit 404 380 365 370 367 Net Interest Income (NII) 527 514 533 537 567 Net Interest Margin (%) 4.34 4.00 4.10 4.08 4.24 (Quarter Annualised) Gross NPA % 1.39 1.56 1.
Slide 15: Efficiency Ratios (Y-o-Y)
Efficiency Ratios (Y-o-Y) CREDIT COST % COST OF FUNDS % COST TO INCOME RATIO % 1.60% 6.50% 48.00% 47.00% 1.40% 6.30% 47.00% 6.10% 46.10% 1.20% 46.00% 5.90% 1.00% 5.70% 45.00% 44.90% 0.80% 5.50% 44.00% 0.60% 5.30% 5.10% 43.00% 42.29% 0.40% 4.90% 42.24% 0.20% 42.00% 4.70% 0.00% 4.50% 41.00% COST OF DE
Slide 16: Efficiency Ratios (Q-o-Q)
Efficiency Ratios (Q-o-Q) (in %) Parameters Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Credit Cost 0.64 0.50 0.85 0.06 0.21 Cost of funds 5.03 5.52 5.79 5.90 5.79 Cost to Income Ratio 43.14 44.22 46.99 46.73 49.85 Cost of Deposits 5.02 5.52 5.78 5.88 5.76 Yield on Advances 9.53 9.82 10.19 10.25 10.30 Yield
Slide 17: Asset Quality
, Asset Quality Q4FY
Slide 18: NPA (Y-o-Y)
NPA (Y-o-Y) (₹ in crores) (₹ in crores) GROSS NPA NET NPA 1200.00 700.00 1.98% 2.10% 3.80% 1.80% 1.90% 1084.78 3.62% 600.00 613.82 1000.00 1020.98 3.44% 3.30% 1.70% 500.00 497.47 800.00 1.50% 2.80% 400.00 600.00 1.30% 335.82 575.06 570.92 300.00 317.58 521.46 2.30% 1.10% 400.00 229.82 200.00 0.85% 0
Slide 19: NPA Sector-wise (Y-o-Y)
NPA Sector-wise (Y-o-Y) (₹ in Crores) (₹ in Crores) Gross NPA Composition FY2023 FY2024 1200 1021 1085 RETAIL 44 30 3.80% 3.62% AGRI 49 51 3.44% 1000 MSME 184 210 3.30% 480 800 OTHERS 244 284 2.80% 698 TOTAL GNPA 521 575 571 575 600 521 Net NPA 230 336 2.30% 197 284 435 244 400 1.80% 272 1.69% 222 2
Slide 20: Slippage Ratio & Sector-wise Slippage (Y-o-Y)
Slippage Ratio & Sector-wise Slippage (Y-o-Y) SLIPPAGE RATIO % 2.65% 2.15% 2.05% 2.15% 1.70% 1.65% 1.36% 1.15% 0.82% 0.65% 0.15% RETAIL AGRI MSME OTHERS 70 66 140 450 411 250 129 228 58 400 355 60 120 350 200 50 100 300 262 40 80 214 150 137 250 (₹ in crores) 27 29 170 30 60 200 100 47 42 47 18 150
Slide 21: Movement of NPA (Y-o-Y)
Movement of NPA (Y-o-Y) (₹ in Crores) Particulars FY2020 FY2021 FY2022 FY2023 FY2024 Opening Balance of Gross NPA 1168.11 1020.98 1084.78 570.92 521.46 i)Cash Recovery 219.62 110.47 309.45 198.20 223.72 ii)Upgradation 116.26 8.10 131.38 23.89 14.21 iii)Write Off 365.91 392.59 320.89 98.72 211.24 Tot
Slide 22: SMA Bucket-wise (Y-o-Y)
SMA Bucket-wise (Y-o-Y) (₹ in Crores) (₹ in Crores) (₹ in Crores) (₹ in Crores) SMA 0 SMA 1 SMA 2 TOTAL SMA 7000 6335 1400 800 8000 7312 1186 671 6000 1200 700 7000 901 600 534 6000 5000 1000 892 512 772 500 475 5000 800 4131 4000 400 4000 3000 2274 600 2430 468 300 205 3000 2447 2000 400 200 2000 1
Slide 23: SMA Sector-wise (Y-o-Y)
SMA Sector-wise (Y-o-Y) (₹ in crores) (₹ in crores) (₹ in crores) (₹ in crores) SMA - RETAIL SMA - AGRI SMA - MSME SMA - OTHERS 1200 1137 700 4000 3000 2825 618 3384 971 600 3500 2500 1000 906 500 3000 2000 800 727 2500 1500 400 1078 600 322 2000 485 1594 1000 300 211 1500 432 341 400 165 927 924 50
Slide 24: Stressed Assets (Y-o-Y)
Stressed Assets (Y-o-Y) Branch Network 5.00% 4.46% 4.50% 4.22% 4.03% (in %) 4.00% 3.50% 3.18% 3.00% 2.70% 2.50% (₹ in crores) Particulars FY2020 FY2021 FY2022 FY2023 FY2024 Standard Restructure 171.30 187.00 935.15 673.81 503.76 advances Gross NPA 1020.98 1084.78 570.92 521.46 575.06 Total Stressed
Slide 25: NPA Sector-wise (Q-o-Q)
NPA Sector-wise (Q-o-Q) Branch Network (₹ in crores) Q-o-Q Y-o-Y Growth Growth Particulars Q4FY23* Q1FY24 Q2FY24 Q3FY24 Q4FY24 (Q4FY24 (Q4FY24 Over Over Q3FY24) Q4FY23) Retail 44.36 47.55 42.18 44.96 29.99 -33.30% -32.39% Agriculture 69.36 76.23 70.49 62.13 50.98 -17.95% -26.50% MSME 280.91 315.20 3
Slide 26: Slippage Sector-wise (Q-o-Q)
Slippage Sector-wise (Q-o-Q) Branch Network (₹ in crores) Q-o-Q Y-o-Y Growth Growth Particulars Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 (Q4FY24 (Q4FY24 Over Over Q3FY24) Q4FY23) Retail 4.68 8.50 3.05 8.40 13.84 64.76% 195.73% Agriculture 1.48 11.28 15.18 2.96 9.25 212.50% 525.00% MSME 62.66 59.93 103.89
Slide 27: Movement of NPA (Q-o-Q)
Movement of NPA (Q-o-Q) Branch Network (₹ in crores) Particulars Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Opening Balance of Gross NPA 591.08 521.46 580.72 643.84 649.13 i)Cash Recovery 40.00 36.47 68.56 53.88 65.56 ii)Upgradation 1.34 5.28 19.88 22.61 14.09 iii)Write Off 98.72 0.00 157.47 0.00 53.77 Tota
Slide 28: SMA Sector-wise (Q-o-Q)
SMA Sector-wise (Q-o-Q) Branch Network (₹ in crores) Q-o-Q Y-o-Y Growth Growth Particulars Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 (Q4FY24 (Q4FY24 Over Over Q3FY24) Q4FY23) Retail 969.82 1047.94 858.77 884.11 727.45 -17.72% -24.99% Agriculture 211.40 191.53 143.10 140.75 94.05 -33.18% -55.51% MSME 924.45
Slide 29: Stressed Assets (Q-o-Q)
Stressed Assets (Q-o-Q) Branch Network (₹ in crores) Q-o-Q Y-o-Y Growth Growth Particulars Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 (Q4FY24 (Q4FY24 Over Over Q3FY24) Q4FY23) Standard Restructure 673.81 615.31 575.37 533.71 503.76 -5.61% -25.24% advances Gross NPA 521.46 580.72 643.84 649.13 575.06 -11.41%
Slide 30: Restructured Advances (Q-o-Q)
Restructured Advances (Q-o-Q) (₹ in Crores) Q-o-Q Y-o-Y Growth Growth Particulars Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 (Q4FY24 (Q4FY24 Over over Q3FY24) Q4FY23) Advances (Gross) 37582.11 37292.21 37778.05 38385.87 39970.40 4.13% 6.35% Restructured Assets 785.53 702.60 648.71 599.17 570.02 -4.87% -27.4
Slide 31: Sector-wise Restructured Accounts (Q-o-Q)
Sector-wise Restructured Accounts (Q-o-Q) (₹ in Crores) Q-o-Q Y-o-Y Growth Growth Sector Q4FY23 Q1FY24* Q2FY24 Q3FY24 Q4FY24 (Q4FY24 (Q4FY24 Over over Q3FY24) Q4FY23) 1.Retail 184.82 180.01 163.62 157.12 153.87 -2.07% -16.75% 2.AGRI 17.37 35.76 26.02 25.08 32.73 30.50% 88.43% 3.MSME 306.63 394.80 36
Slide 32: Business / Financial Performance
Business / Financial Performance Tamilnad Mercantile Bank Ltd Bea step ahead in life an A | 4 : f VAS Leaarana 4 , SASS i y? oe » me N
Slide 33: Business Mix (Y-o-Y)
Business Mix (Y-o-Y) (₹ in Crores) TOTAL BUSINESS 95000 90000 89485 85000 85348 80000 78681 75000 70000 72511 65000 65061 60000 55000 50000 (₹ in Crores) (₹ in Crores) DEPOSITS ADVANCES 55000 40000 39970 38000 50000 37582 36000 49515 47766 45000 34000 44933 33748 32000 40000 40970 30000 31541 35000
Slide 34: Deposits Portfolio (Y-o-Y)
Deposits Portfolio (Y-o-Y) (₹ in Crores) Y-o-Y Growth % FY2024 Business Parameters FY2020 FY2021 FY2022 FY2023 FY2024 (FY2024 5 Years CAGR % over FY2023) A. Current Account 2,995 3,596 4,330 4,249 4,587 7.95% 10.30% Bulk Term Deposits CASA B. Savings Bank 6,523 8,089 9,375 9,487 10,089 6.35% 11.52%
Slide 35: Advances Portfolio (Y-o-Y)
Advances Portfolio (Y-o-Y) (₹ in Crores) (₹ in Crores) Y-o-Y FY2024 Growth % 5 Years Particulars FY2020 FY2021 FY2022 FY2023 FY2024 (FY2024 CAGR % over FY2023) Others Gross Advances 28,236 31,541 33,748 37,582 39,970 6.35% 8.15% 3486 Retail 9% 8478 Of which 21% Retail Sector 5,442 6,416 6,758 7,866
Slide 36: Financial Performance
Financial Performance (₹ in Crores) 3 Months 12 Months Q-o-Q Y-o-Y Growth % Growth % Financial Parameters Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 (Q4FY24 (Q4FY24 31.03.2023 31.03.2024 Over over Q3FY24) Q4FY23) Interest Income 1070.08 1155.89 1209.16 1229.16 1253.70 2.00% 17.16% 4081.04 4847.91 Non-Intere
Slide 37: Balance Sheet
' Tamilnad 7 Mercantile - BALA Bank Ltd Bea step ahead in life Balance Sheet ASSETS Current As! Non-Curren' Liability ie OAFY ie ! a mel 2024 oy Be —" INCOME STA by S50) : r % EXPENS! Resear opment 113374 4 Developmant ses 21849. = 1 Operting 500.7) a Narketing” 59877089 ce NEN TW se Hl) Hi EQUITY S
Slide 38: Balance Sheet
Balance Sheet (₹ in Crores) Liabilities (₹ in Crores) As on As on As on As on As on Particulars 31.03.2020 31.03.2021 31.03.2022 31.03.2023 31.03.2024 Capital 142.51 142.51 142.51 158.35 158.35 Reserves and Surplus 3837.13 4437.47 5193.19 6770.00 7762.86 Deposits 36825.03 40970.42 44933.11 47766.48
Slide 39: External Ratings
External Ratings
Slide 40: External Ratings: CRISIL
External Ratings CRISIL Ratings Fixed Deposits (short term) A1+ Certificate of Deposits A1+ www.tmb.in 39
Slide 41: Network Expansion
Expansion Bea sop shoe nie Network y | = TINNB mina 4 \ / Bank Ltd )
Slide 42: New branches opened in Q4 and FY2023-24
During the Q4, 5 new branches were opened and during FY2023-24, 22 new branches were opened. www.tmb.in 41
Slide 43: Strategic Partners
Strategic Partners
Slide 44: Strategic Partners - Fintech / Business Tie-ups
Strategic Partners - Fintech / Business Tie-ups Insurance Fintech www.tmb.in 43
Slide 45: 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.J.Sundaresh Kumar, Chief Compliance Officer Mob: 73737 87977 E-mail: cco@tmbank.in Website: w
Tamilnad Mercantile Bank — Q4 FY2024 Earnings Presentation on 6ix