Tamilnad Mercantile Bank Limited · NSE:TMB
Tamilnad Mercantile Bank — Q3 FY2023 Earnings Presentation
38 slides from Tamilnad Mercantile Bank's earnings presentation, Jan 23, 2023
Slide 1: Stock exchange cover letter: Investor Presentation – Q3 Results
Secretarial Section Head Office, 57- V.E. Road, Thoothukudi – 628 002. ☏: 0461-2325136 e-mail : secretarial@tmbank.in CIN: L65110TN1921PLC001908 Ref.No.TMB.SE.51/2022-23 23.01.2023 The Manager, The Manager, Bombay Stock Exchange limited, National Stock Exchange of India Ltd, Phiroze Jeejeebhoy Tower
Slide 2: Tamilnad Mercantile Bank
Tamilnad Mercantile
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: 01 Performance Highlights 02 Key Ratios / Parameters 03 Asset Quality
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
Slide 5: 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
Slide 6: 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
Slide 7: 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.
Slide 8: 01 Performance Highlights 02 Key Ratios / Parameters 03 Asset Quality
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
Slide 9: 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
Slide 10: 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
Slide 11: 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%
Slide 12: 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
Slide 13: 01 Performance Highlights 02 Key Ratios / Parameters 03 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
Slide 14: 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
Slide 15: 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
Slide 16: 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
Slide 17: 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%
Slide 18: 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
Slide 19: 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
Slide 20: Sector-wise Slippages Position Recoveries / Upgradation
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
Slide 21: 01 Performance Highlights 02 Key Ratios / Parameters 03 Asset Quality
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
Slide 22: 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
Slide 23: 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.
Slide 24: 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
Slide 25: 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
Slide 26: 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.
Slide 27: 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
Slide 28: 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%
Slide 29: 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
Slide 30: 01 Performance Highlights 02 Key Ratios / Parameters 03 Asset Quality
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
Slide 31: 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
Slide 32: 01 Performance Highlights 02 Key Ratios / Parameters 03 Asset Quality
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
Slide 33: Fintech / Business Tie-ups (1/2)
Fintech / Business Tie-ups (1/2) www.tmb.in 32
Slide 34: Fintech / Business Tie-ups (2/2)
Fintech / Business Tie-ups (2/2) www.tmb.in 33
Slide 35: 01 Performance Highlights 02 Key Ratios / Parameters 03 Asset Quality
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
Slide 36: PAN India Branch Network
PAN India Branch Network www.tmb.in 35
Slide 37: 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
Slide 38: 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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