Tamilnad Mercantile Bank Limited · NSE:TMB
Tamilnad Mercantile Bank — Q4 FY2023 Earnings Presentation
41 slides from Tamilnad Mercantile Bank's earnings presentation, Apr 24, 2023
Slide 1: Exchange filing cover letter
Secretarial Section Head Office, 57- V.E. Road, Thoothukudi – 628 002. ☏: 0461-2325136 e-mail : secretarial@tmbank.in CIN: L65110TN1921PLC001908 Ref.No.TMB.SE.11/2023-24 24.04.2023 The Manager, The Manager, Bombay Stock Exchange limited, National Stock Exchange of India Ltd, Phiroze Jeejeebhoy Tower
Slide 2: Investor Presentation Q4 FY 2023
Investor Presentation Q4 FY 2023
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: Performance Highlights
1 Performance Highlights Balance Sheet 5 2 Key Ratios / Parameters Strategic Partners 6 3 Asset Quality Business / Banking Outlet 7 4 Financial Performance www.tmb.in 3
Slide 5: Best in the last 10 Years
Performance Highlights Highest ever Net Profit ₹1029CR Highest ever Operating Profit ₹1573CR Highest ever Net Interest Income ₹2094CR NIM has increased to 4.46% ROA has moved to 1.97% Best in Gross NPA has decreased to 1.39% the last Net NPA has decreased to 0.62% 10 Years PCR has increased to 90.90
Slide 6: Shareholders Value-Enhanced
Shareholders Value-Enhanced (₹ in Crores) (in ₹) (in ₹) NET WORTH BOOK VALUE OF SHARE EPS 8000 500 80 7000 70 6000 400 60 5000 300 50 437.53 68.06 4000 40 374.41 6928 57.67 321.38 279.25 5336 200 253.89 3000 30 42.34 4580 3980 3618 28.61 2000 100 20 18.14 1000 10 0 0 0 26.26% ROA % ROE % CAPITAL ADE
Slide 7: Performance Highlights FY2023 vis-à-vis FY2022
Performance Highlights FY2023 vis-à-vis FY2022 Net Profit 25% FY23 FY22 1,029 CR 822 CR Deposits Operating Profit 6% 4% FY23 FY22 FY23 FY22 47,766 CR 44,933 CR 1,573 CR 1,516 CR Advances Net Interest Income 11% 15% FY23 FY22 FY23 FY22 37,582 CR 33,748 CR 2,094 CR 1,815 CR Total Business 8% FY23 FY22
Slide 8: Asset Quality
1 Performance Highlights Balance Sheet 5 2 Key Ratios / Parameters Strategic Partners 6 3 Asset Quality Business / Banking Outlet 7 4 Financial Performance www.tmb.in 7
Slide 9: Key Ratios / Parameters (Y-o-Y) (1/2)
Key Ratios / Parameters (Y-o-Y) (1/2) (₹ in Crores) (₹ in Crores) NET PROFIT OPERATING PROFIT 1100 1600 1000 1400 900 800 1200 700 1000 600 1573 1527 1029 500 800 1202 822 400 600 995 884 603 300 400 408 200 259 100 200 0 0 (₹ in Crores) (in %) NET INTEREST INCOME (NII) NET INTEREST MARGIN (NIM) % 2
Slide 10: Key Ratios / Parameters (Y-o-Y) (2/2)
Key Ratios/ Parameters (Y-o-Y) (2/2) GROSS NPA % NET NPA % PCR % 4.32% 4.50% 2.50% 2.40% 95.00% 90.90% 4.00% 3.62% 1.98% 90.00% 87.92% 3.50% 2.00% 1.80% 3.44% 3.00% 85.00% 1.50% 80.75% 79.53% 2.50% 80.00% 2.00% 1.69% 0.95% 1.00% 75.00% 73.61% 1.50% 0.62% 1.00% 1.39% 70.00% 0.50% (Annualised) ROA % C
Slide 11: Key Ratios / Parameters (Q-o-Q)
Key Ratios / Parameters (Q-o-Q) (₹ in Crores) Q-o-Q Y-o-Y Growth Growth Parameters MAR’22 JUN’22 SEP’22 DEC’22 MAR’23 (MAR’23 (MAR’23 Over over DEC’22) MAR’22) Net Profit 227 234 262 280 253 -9.64% 11.45% Operating Profit 426 374 389 405 404 -0.25% -5.16% Net Interest Income (NII) 488 524 509 534 52
Slide 12: Efficiency Ratios (Y-o-Y)
Efficiency Ratios (Y-o-Y) CREDIT COST % COST OF FUNDS % COST TO INCOME RATIO % COST OF DEPOSITS % 2.00% 6.50% 6.29% 47.00% 46.23% 6.50% 1.87% 6.27% 46.10% 1.80% 6.30% 46.00% 6.30% 6.10% 6.10% 1.60% 1.51% 45.00% 5.90% 44.90% 5.90% 1.40% 1.37% 5.70% 5.70% 5.48% 44.00% 1.20% 5.50% 5.50% 1.00% 5.30% 43.
Slide 13: Efficiency Ratios (Q-o-Q)
Efficiency Ratios (Q-o-Q) (in %) Parameters MAR’22 JUN’22 SEP’22 DEC’22 MAR’23 Credit Cost (Annualised) 0.45 0.07 0.27 0.32 0.40 Cost of funds (Annualised) 4.84 4.52 4.59 4.56 5.15 Cost to Income Ratio 39.25 43.58 42.02 41.76 43.14 Cost of Deposits (Annualised) 4.84 4.53 4.59 4.53 5.17 Yield on Adva
Slide 14: Asset Quality
1 Performance Highlights Balance Sheet 5 2 Key Ratios / Parameters Strategic Partners 6 3 Asset Quality Business / Banking Outlet 7 4 Financial Performance www.tmb.in 13
Slide 15: NPA (Y-o-Y)
NPA (Y-o-Y) (₹ in crores) (₹ in crores) GROSS NPA NET NPA 1400.00 700.00 1200.00 600.00 1000.00 500.00 800.00 400.00 636.51 613.82 1168.11 1084.78 1020.98 600.00 300.00 497.47 317.58 400.00 200.00 570.92 521.46 229.82 200.00 100.00 0.00 0.00 www.tmb.in 14
Slide 16: Sector-wise GNPA (Y-o-Y)
Sector-wise GNPA (Y-o-Y) (₹ in crores) (₹ in crores) (₹ in crores) (₹ in crores) RETAIL AGRI MSME CORPORATE & OTHERS 100 80 500 1000 90 450 900 70 80 400 800 93.78 60 70 350 700 879.30 76.00 50 60 300 600 434.85 50 40 250 500 271.81 697.61 40 30 57.53 200 400 55.77 51.16 48.99 221.78 30 150 300 46.3
Slide 17: Slippage Ratio & Sector-wise Slippage (Y-o-Y)
Slippage Ratio & Sector-wise Slippage (Y-o-Y) (₹ in crores) (₹ in crores) SLIPPAGE RATIO % ON TOTAL ADVANCES RETAIL AGRI 70 66 140 129 58 60 120 4.15% 50 100 3.92% 38 80 40 3.65% 30 27 60 47 47 42 47 20 18 40 3.15% 10 20 0 0 2.65% 2.05% 2.15% 2.15% 1.70% 1.65% (₹ in crores) (₹ in crores) 1.15% MSME
Slide 18: Movement of NPA (Y-o-Y)
Movement of NPA (Y-o-Y) (₹ in Crores) Particulars FY2019 FY2020 FY2021 FY2022 FY2023 Opening Balance of Gross NPA 868.28 1168.11 1020.98 1084.78 570.92 i)Cash Recovery 146.31 219.62 110.47 309.45 198.20 ii)Upgradation 237.32 116.26 8.10 131.38 23.89 iii)Write Off 263.77 365.91 392.59 320.89 98.72 To
Slide 19: SMA (Y-o-Y)
SMA (Y-o-Y) (₹ in Crores) (₹ in Crores) (₹ in Crores) (₹ in Crores) SMA 0 SMA 1 SMA 2 TOTAL SMA 9000 1400 800 10000 9397 7876 8000 1186 700 671 9000 1200 7000 6335 956 565 8000 7312 901 600 534 1000 892 7000 6000 772 500 475 800 6000 5000 400 5000 4131 4000 600 300 4000 3000 2274 205 2430 400 200 30
Slide 20: 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 1137 782 1200 800 5000 4513 4000 4500 3397 971 700 3500 1000 906 618 4000 3384 2825 600 3000 800 3500 705 2500 500 3000 600 485 400 2500 2000 322 2000 1594 1500 400 300 107
Slide 21: Stressed Assets (Y-o-Y)
Stressed Assets (Y-o-Y) Branch Network 5.50% 5.26% 5.00% 4.46% (in %) 4.50% 4.22% 4.03% 4.00% 3.50% 3.18% 3.00% (₹ in crores) Particulars FY2019 FY2020 FY2021 FY2022 FY2023 Standard Restructure 252.46 171.30 187.00 935.15 673.81 advances Gross NPA 1168.11 1020.98 1084.78 570.92 521.46 Gross Advances
Slide 22: NPA – Sector-wise (Q-o-Q)
NPA – Sector-wise (Q-o-Q) (₹ in Crores) Q-o-Q Y-o-Y Growth Growth Parameters MAR’22 JUN’22 SEP’22 DEC’22 MAR’23 (MAR’23 (MAR’23 Over over DEC’22) MAR’22) Retail 55.77 52.36 48.52 47.96 44.36 -7.51% -20.46% Agriculture 46.37 55.67 61.34 77.26 48.99 -36.59% 5.65% MSME 271.81 295.10 311.63 294.01 184.3
Slide 23: Slippage – Sector-wise (Q-o-Q)
Slippage – Sector-wise (Q-o-Q) (₹ in Crores) Q-o-Q Y-o-Y Growth Growth Parameters MAR’22 JUN’22 SEP’22 DEC’22 MAR’23 (MAR’23 (MAR’23 Over over DEC’22) MAR’22) Retail 1.30 4.67 2.66 5.53 4.68 -15.37% 260.00% Agriculture 0.00 9.50 14.95 20.78 1.48 -92.88% -- MSME 59.01 31.63 53.11 22.60 62.66 177.26%
Slide 24: Movement of NPA (Q-o-Q)
Movement of NPA (Q-o-Q) (₹ in Crores) Particulars Q4FY22 FY2022 Q1FY23 Q2FY23 Q3FY23 Q4FY23 FY2023 Opening Balance of Gross 985.56 1084.78 570.92 572.15 593.34 591.08 570.92 NPA i)Cash Recovery 91.06 309.45 65.15 46.41 46.64 40.00 198.20 ii)Upgradation 51.95 131.38 10.64 6.09 5.82 1.34 23.89 iii)Wri
Slide 25: SMA– Sector-wise (Q-o-Q)
SMA– Sector-wise (Q-o-Q) (₹ in Crores) Q-o-Q Y-o-Y Growth Growth Parameters MAR’22 JUN’22 SEP’22 DEC’22 MAR’23 (MAR’23 (MAR’23 Over over DEC’22) MAR’22) Retail 1137.19 1244.81 1339.90 887.23 969.82 9.31% -14.72% Agriculture 322.17 294.78 317.91 445.03 211.40 -52.50% -34.38% MSME 1593.81 1946.03 1693
Slide 26: Stressed Assets (Q-o-Q)
Stressed Assets (Q-o-Q) Branch Network (₹ in Crores) Q-o-Q Y-o-Y Growth Growth Particulars MAR’22 JUN’22 SEP’22 DEC’22 MAR’23 (MAR’23 (MAR’23 Over over DEC’22) MAR’22) Standard Restructure advances 935.15 903.42 832.73 804.53 673.81 -16.25% -27.95% Gross NPA 570.92 572.15 593.34 591.08 521.46 -11.78
Slide 27: Restructured Advances (Q-o-Q)
Restructured Advances (Q-o-Q) (₹ in Crores) Q-o-Q Y-o-Y Growth Growth Particulars MAR-22 JUN’22 SEP’22 DEC’22 MAR’23 (MAR’23 (MAR’23 Over over DEC’22) MAR’22) Advances (Gross) 33748.17 33822.76 34876.53 34801.61 37582.11 7.99% 11.36% Restructured Assets 1034.30 994.56 948.45 896.36 785.53 -12.36% -2
Slide 28: 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 MAR-22 JUN’22 SEP’22 DEC’22 MAR’23 (MAR’23 (MAR’23 Over over DEC’22) MAR’22) 1.Retail 185.16 181.88 180.42 194.14 184.82 -4.80% -0.18% 2.AGRI 42.13 41.27 43.40 19.55 17.37 -11.15% -58.77% 3.MSME 436.55 419.93 39
Slide 29: Financial Performance
1 Performance Highlights Balance Sheet 5 2 Key Ratios / Parameters Strategic Partners 6 3 Asset Quality Business / Banking Outlet 7 4 Financial Performance www.tmb.in 28
Slide 30: Business Mix (Y-o-Y)
Business Mix (Y-o-Y) (₹ in Crores) TOTAL BUSINESS 90000 80000 70000 60000 85348 78681 50000 72511 65061 62155 40000 30000 20000 10000 (₹ in Crores) (₹ in Crores) TOTAL DEPOSITS TOTAL ADVANCES 40000 45000 35000 40000 30000 35000 25000 47766 37582 44933 30000 33748 20000 40970 31541 36825 28236 27019
Slide 31: Deposits Portfolio (Q-o-Q)
Deposits Portfolio (Q-o-Q) (₹ in Crores) (₹ in Crores) Q4FY23 Q-o-Q Y-o-Y Growth Growth Business Parameters MAR-22 JUN’22 SEP’22 DEC’22 MAR’23 (MAR’23 (MAR’23 Over over DEC’22) MAR’22) 13736 34030 A.CASA 13,705 13,246 13,192 12,851 13,736 6.88% 0.22% CASA % 31% 31% 31% 30% 29% B. Total Term 31,228 2
Slide 32: Advances Portfolio (Q-o-Q)
Advances Portfolio (Q-o-Q) (₹ in Crores) (₹ in Crores) Q-o-Q Y-o-Y Q4FY23 Growth Growth Particulars MAR-22 JUN’22 SEP’22 DEC’22 MAR’23 (MAR’23 (MAR’23 Over over DEC’22) MAR’22) Gross Advances 33,748 33,823 34,877 34,802 37,582 7.99% 11.36% 13% 21% 4822 7866 Of which Retail Sector 6,758 6,853 7,127 7
Slide 33: Financial Performance
Financial Performance (₹ in Crores) 3 Months 12 Months Q-o-Q Y-o-Y Y-o-Y Growth Growth Growth Financial Parameters Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 (Q4FY’23 Q4FY23 MAR’22 MAR’23 MAR’23 Over over over Q3FY’23) Q4FY22 MAR’22 Interest Income 986.49 1002.15 996.69 1012.12 1070.08 5.73% 8.47% 3833.87 4
Slide 34: Balance Sheet
1 Performance Highlights Balance Sheet 5 2 Key Ratios / Parameters Strategic Partners 6 3 Asset Quality Business / Banking Outlet 7 4 Financial Performance www.tmb.in 33
Slide 35: Balance Sheet
Balance Sheet (₹ in Crores) Liabilities (₹ in Crores) As on As on As on As on As on 31.03.2019 31.03.2020 31.03.2021 31.03.2022 31.03.2023 Capital 142.51 142.51 142.51 142.51 158.35 Reserves and Surplus 3475.74 3837.13 4437.47 5193.19 6770.00 Deposits 35136.25 36825.03 40970.42 44933.11 47766.48 Bor
Slide 36: Strategic Partners
1 Performance Highlights Balance Sheet 5 2 Key Ratios / Parameters Strategic Partners 6 3 Asset Quality Business / Banking Outlet 7 4 Financial Performance www.tmb.in 35
Slide 37: Strategic Partners - Fintech / Business Tie-ups
Strategic Partners - Fintech / Business Tie-ups Point of Insurance Sales www.tmb.in 36
Slide 38: Business / Banking Outlet
1 Performance Highlights Balance Sheet 5 2 Key Ratios / Parameters Strategic Partners 6 3 Asset Quality Business / Banking Outlet 7 4 Financial Performance www.tmb.in 37
Slide 39: Banking outlet
Banking outlet www.tmb.in 38
Slide 40: Awards & Accolades during the FY2023
Awards & Accolades during the FY2023 The Bank has bagged three awards at Atal Pension Yojana Felicitation and Strategic Review Programme conducted on May 2022. 1. Old age Freedom fighters award of excellence (August – October 2021) 2. Outperformers (Q3, 2021-22) 3. Citizen’s Choice Award for Best pe
Slide 41: 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
Tamilnad Mercantile Bank — Q4 FY2023 Earnings Presentation on 6ix