Tamilnad Mercantile Bank
About
The Tamilnad Mercantile Bank Ltd., formerly the Nadar Bank Ltd., was founded in 1921. The idea of creating a bank under the leadership of the capable Nadar business community was floated at the Nadar Mahajana Sangam’s 20th anniversary celebrations in Tuticorin in 1920. The plan was quickly implemented. On May 11, 1921, the bank was incorporated as “The Nadar Bank Ltd.”
On May 11, 1935, the Bank, then known as “The Nadar Bank Ltd.,” was designated as a Scheduled Bank under the Reserve Bank of India Act. On November 26, 1962, the Nadar Bank Ltd. changed its name to Tamilnad Mercantile Bank Ltd.
Until 1947, the bank only had four branches in Tuticorin, Madurai, Sivakasi, and Virudhunagar. The bank also had a branch in Colombo, which was opened in 1937 and closed in 1939. The bank today has 509 full–fledged branches across India, as well as 12 regional offices, 11 extension counters, 6 central processing centres, 1 service branch, 4 currency chests, and 1151 ATMs. The 509 branches are all computerised and linked. In 1976, the first branch outside of Tamil Nadu was established in Bangalore.
Overview
The Nadar Bank was founded in 1921 with the help of the Nadar Business Community. In 1962, the bank’s name was changed to Tamilnad Mercantile Bank in order to appeal to a wider audience than the Nadar community. TMB was the fastest-growing private sector bank for five years, from 2010 to 2015. The TMB was the first private sector bank in India to embrace computerisation for branch-level operations in 1983. All of the Bank’s 509 branches are now connected via the Infosys FINACLE Software and have 100 percent connectivity.
For collection services, the bank has partnered with HDFC Bank and IDBI Bank. The company launched two link offices in Delhi and Vijayawada, a dedicated MSME processing centre in Surat, a specialised NRI desk in Mumbai, 11 Jewel Loan shops in rural areas, and TMB Multi-currency travel card, International Rupay debit card, and Contactless debit cards during the fiscal year 2018-19.
Insights
The bank in the past has been expanding its network of branches and is capable of generating large amounts of deposits. It has been a pioneer in several technological breakthroughs in the sector, giving it an advantage over competitors and increasing the value of the Tamilnad mercantile bank’s stock.
The Bank has been increasing its deposit ratio in Current and Savings Accounts (CASA), which has resulted in a higher Net Interest Margin. It is expected to provide reasonable CAGR returns to the shareholders of the prestigious Tamilnad Mercantile Bank.
Management
Thiru K.V. Rama Murthy (MD & CEO)
With 34 years of banking experience in various capacities in Bank of Baroda, ranging from Agri. Officer to Executive Director, From 2011 until 2014, he served as the Chief Executive and Territorial Head for GCC operations in Dubai, UAE. From June 2005 until January 2006, he served as Chairman of the Shahjahanpur RRB. From February to June 2004, he was a nominated Director at Nainital Almora Kshetriya Gramin Bank (a sponsor bank of Bank of Baroda). He spent the previous two years as Executive Director of United Bank of India. He was in charge of administering, supervising, controlling, and guiding the Bank’s whole operations during his time there.
Thiru A. Shidambaranathan (VP)
He was a Chartered Accountant for more than 31 years, with extensive knowledge and expertise in Auditing, Accounting, Taxation, and Finance. During his time as a director at our Bank from 2011 to 2018, he was a member of different Board-level committees. Since 2011, he has chaired the Board’s Audit Committee.