Tamilnad Mercantile Bank (TMB), a century-old private sector bank, has announced a strategic partnership with Bajaj Allianz General Insurance Company Ltd. (BAGIC) to broaden its non-life insurance product offerings. This collaboration marks a significant step in TMB's efforts to provide comprehensive financial solutions to its customers.

Expanded Insurance Portfolio

The partnership will enable TMB to offer a wide range of non-life insurance products, including:

• Motor insurance
• Health and personal accident insurance
• Asset protection covers for loan customers
• Cyber insurance

These products will be accessible through TMB's extensive network of 587 branches across 17 states and 4 Union Territories, as well as through the bank's digital platforms.

Strategic Growth and Customer-Centric Approach

Mr. Salee S Nair, Managing Director & CEO of TMB, emphasized the bank's commitment to providing complete financial solutions under one roof. He stated, "Partnering with Bajaj Allianz General Insurance will allow us to offer customers robust, tech-driven protection plans while supporting our strategy to grow fee-based income."

This new tie-up aligns with TMB's strategy to enhance its non-life insurance portfolio. As per IRDAI guidelines, TMB, registered as a corporate agent, can partner with up to nine companies for marketing non-life insurance products. The addition of BAGIC complements TMB's existing partnerships with United India Insurance Company Ltd., Cholamandalam MS General Insurance Company Ltd., and Zurich Kotak General Insurance Company Ltd.

Seamless Integration and Support

To ensure a smooth insurance experience for both liability and asset customers, BAGIC will provide TMB with:

• A dedicated service team
• Free training for staff
• IT integration
• Web portal linkages

This collaboration builds upon TMB's successful association with Bajaj Allianz Life Insurance Company Ltd. (BALIC), which began in December 2022.

About Tamilnad Mercantile Bank

Tamilnad Mercantile Bank, headquartered in Thoothukudi, Tamil Nadu, boasts a rich history of over 100 years in the banking industry. With a strong track record of continuous profitability, TMB serves more than 5.30 million customers through its pan-India presence. The bank's commitment to combining its century-long legacy with modern financial solutions positions it as a trusted one-stop financial solutions provider for its diverse customer base.

This strategic partnership with Bajaj Allianz General Insurance reinforces TMB's dedication to offering comprehensive, technology-driven financial products and services, further solidifying its position in the competitive banking sector.

Tamilnad Mercantile Bank (TMB) has reported a 6.13% year-on-year increase in net profit, demonstrating resilience in a challenging economic environment. The bank's performance was marked by significant growth in deposits and a strategic focus on strengthening its MSME portfolio.

Key Financial Highlights

• Net profit grew by 6.13% year-on-year
• Total deposits increased by 9.38% to ₹53,803.00 crores
• Total business crossed ₹98,923.00 crores, up 9.86%
• CASA ratio improved by 34 basis points to 26.78%
• RAM (Retail, Agriculture, MSME) portfolio grew 11.93% to ₹42,100.00 crores
• Gross Non-Performing Assets (GNPA) improved to 1.22%, down 22 basis points
• Net Non-Performing Assets (NNPA) halved to 33 basis points

Deposit Growth and CASA Performance

TMB's deposit base witnessed a substantial growth of 9.38% year-on-year, reaching ₹53,803.00 crores. The CASA (Current Account Savings Account) ratio showed improvement, increasing by 34 basis points to 26.78%, with a year-on-year CASA growth of 4.51%.

Advances and Business Growth

The bank's total business crossed ₹98,923.00 crores, marking a 9.86% increase. The RAM portfolio, a key focus area for TMB, grew by 11.93% to ₹42,100.00 crores. The bank maintains a strong capital position with a capital adequacy ratio of over 32% and a leverage ratio of 12.44%.

Asset Quality and Profitability

TMB reported an improvement in asset quality, with GNPA decreasing by 22 basis points to 1.22% and NNPA halving to 33 basis points. The bank's Net Interest Margin (NIM) stood at 3.84%, with management guiding a NIM range between 3.80%-3.90% for the fiscal year.

Strategic Initiatives and Future Outlook

The bank has implemented several strategic initiatives to drive growth:

1. Establishment of credit management centers to enhance MSME lending
2. Implementation of new loan management systems
3. Focus on expanding the MSME segment

TMB's management expects deposit growth of 10-12% and advances growth of around 15% for the full year. The bank is particularly focusing on expanding its MSME segment through new loan management systems and credit management centers.

Management Commentary

The bank's management highlighted their focus on the MSME sector, stating, "We are implementing new loan management systems and credit management centers to strengthen our MSME portfolio. We anticipate significant growth in this segment in the coming quarters."

The bank's performance demonstrates its resilience and strategic focus on key growth areas. With a strong capital position and improving asset quality, Tamilnad Mercantile Bank appears well-positioned for sustained growth in the coming quarters.

It's worth noting that the bank upfronted performance-based incentives of ₹41.27 crores in the quarter, which impacted the operating profit. Despite this, the overall financial performance remains robust, reflecting the bank's strategic initiatives and focus on key growth segments.