Tamilnad Mercantile Bank Charts Long-Term Growth Strategy with MSME Focus

New Delhi, Sep 28 (KNN) Thoothukudi-based Tamilnad Mercantile Bank (TMB) has unveiled an ambitious long-term roadmap to boost its micro, small, and medium enterprises (MSME) portfolio, in addition to enhancing its overall business operations.

The bank, known for its deep roots in the southern region of India, is now setting its sights on national expansion and digital transformation to fuel its future growth.

One of the central pillars of this strategy is the establishment of MSME hubs and an aggressive expansion of its branch network. In a significant move, TMB has partnered with global consultancy firm McKinsey to help develop a robust MSME strategy, aiming to strengthen its lending capabilities and offer innovative solutions to customers in the sector.

During the first quarter of the current financial year, the bank’s focus on retail, agriculture, and MSME segments saw remarkable results, with these sectors accounting for 92% of its portfolio, up from 90% in the previous year. In absolute terms, the portfolio grew by 12.03%, reaching ₹37,614 crore.

Notably, MSME loans now constitute 35% of this portfolio, reflecting TMB’s commitment to supporting small and medium-sized businesses.

At its 102nd Annual General Meeting (AGM), held at its headquarters in Thoothukudi, TMB outlined several key initiatives for growth. These include the opening of 40 new branches across India, with a strong emphasis on the MSME sector and digital banking services.

Currently, the bank has set up eight MSME hubs and plans to establish one hub in each of its 12 regional offices.

In his address at the AGM, Salee S Nair, Managing Director and CEO of TMB, stressed the bank’s focus on growth through collaboration, enhanced customer service, and digital transformation.

“We are committed to creating a more agile, customer-centric bank, while also safeguarding financial stability,” said Nair, adding that the bank aims to optimise its capital allocation and improve compliance with regulatory frameworks.

Digital transformation remains a key growth driver for the bank, with significant investments in enhancing cybersecurity and improving the customer experience through online platforms.

Alongside these initiatives, TMB will focus on maintaining a net interest margin (NIM) of 4%, while implementing measures to optimise operational efficiency.

Meanwhile, the bank announced the appointment of Vincent Menachery Devassy as its new Executive Director.

Devassy, who assumed office on Friday, brings a wealth of experience and is expected to play a key role in driving operational excellence across the bank.

TMB’s aggressive expansion and transformation plans signal its commitment to evolving as a leading financial institution in India, with the MSME sector at the heart of its growth agenda.

(KNN Bureau)