Tamilnad Mercantile Bank Limited

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Private company (BSE532388)
Industry Banking
Capital Markets
Founded Tuticorin, India, 11 May 1921
Headquarters Tuticorin, India
Area served
Worldwide
Key people
HS Upendra Kamath
(Chairman & MD)
Products Credit cards, Consumer banking, corporate banking, finance and insurance, investment banking, mortgage loans, private banking, wealth management
Revenue Increase409837.8 million (US$6.4 billion) (2012)[1]
Increase 29952.3 million (US$470 million) (2012)[1]
Total assets 315952.3 million (US$4.9 billion)
Website www.tmb.in

Tamilnad Mercantile Bank Limited (TMB) is a bank headquartered at Tuticorin, Tamil Nadu, India. TMB was founded in 1921 as the Nadar Bank, but changed its name to Tamilnad Mercantile Bank in November 1962 to widen its appeal beyond the Nadar community. For the financial year 2011-2012, the bank reported a net profit of 4845.3 million.[2] The bank currently has 400 full branches throughout India, ten regional offices and eleven Extension Counters, two Mobile Banking branches, six central processing centres, one Service Branch, three Currency Chests and 777 Automated Teller Machines (ATM).[3][4] TMB has plans to open branches in Colombo, Singapore, and Malaysia to serve the Tamil community living in those countries.[5]

The bank has been growing strongly throughout South India.[6] and opening new branches.[7] TMB is also preparing for an Initial public offering in 2013.[8][9][10]

TMB was rated as the fastest growing Indian Bank for the five years from 2007 to 2012.[11][12] It was also rated as the Best Bank in the years 2010, 2011 and 2012, due to its fast and robust growth[13] During the years of 2012 and 2013 it did total business of 370 billion rupees.[14] The bank's planned outlay for the financial year is to reach business worth 500 billion rupees, add an additional 150 branches, and increase its ATMs to 600.[15] The bank is expanding rapidly across Mumbai, Delhi, Kolkata, and Gujarat and is on the verge of setting up branches in Dubai, Kuwait and Doha before mid-2014.[16] The growth model of the bank is said to be unique in India; TMB is often referred to as the Bank of America of India.[17] The bank on September,2013 won the ASSOCHAM’s Best Private Sector Bank 2013 award.[18]

History[edit]

Extracted from Pdf Using Inkscape

The history of Tamilnad Mercantile Bank dates back to 1921.[3] The idea to establish a bank for the Nadar business community was first proposed at the annual meeting of the Nadar Mahajana Sangam held at Tuticorin in 1920.[19] The bank was originally registered on 11 May 1921 as Nadar Bank Limited under the Indian Companies Act, 1913. M.V.Shanmugavel Nadar was elected as the first chairman on 4 November 1921. The bank was opened to the public by T.V.Balagurusamy Nadar on 11 November 1921 in Ana Mavanna Building at South Raja Street, Tuticorin.[20] The bank was registered on 11 May 1921 as "The Nadar Bank Ltd".

In 1937 Nadar Bank opened a branch in Ceylon, but by 1939 it had closed it.[21]

By 1947 the bank had only four branches: Tuticorin, Virudhunagar, Madurai and Sivakasi. The bank opened its first Indian branch outside the state of Tamil Nadu in 1976 at Bangalore.

The first new fully computerised branch opened at WGC Road, Tuticorin on 9 December 1984. The bank had established TMBThe Bank has launched its ATM Card on 11 November 2003.

Technology Initiatives[edit]

Tamilnad Mercantile Bank was the first private sector bank in India to introduce computerisation for branch-level operations. The bank adopted modernisationas early in the year 1983. Today all 400 branches of the bank are networked using Infosys's "FINACLE" Software and have achieved 100% connectivity.[22]

RTGS/NEFT facilities in ebanking have been successfully implemented. The bank has also entered into an agreement with M/s. Bill Desk (India ideas.com) and CC Avenues (Avenues India) for providing payment gateway services to the internet banking customers. It was the first old bank to have introduced mobile banking and POS machines. To extend its service to unbanked centres, 18 villages nearer to Thoothukudi and Vallioor were identified and on 30 August 2008 they commenced receiving "Mobile Village Branch Banking" – the first in the banking industry in Tamil Nadu.

The bank has implemented a video conferencing facility to connect head office with various departments and regional offices. TMB is a member of National Financial Switch for its ATM operations. It is also aggressively conducting loan melas in Southern India.[23]

Tie-up arrangement made with Western Union Money Transfer, UAE Exchange & Financial Services...etc. for remittances from abroad to India to facilitate quick report of remittances by the beneficiaries. It is the only old bank in India to have tie-up agreement with ICICI Prudential Mutual Fund, UTI Mutual Fund, Reliance Mutual Fund, Franklin Templeton Mutual Fund, Birla Sun Life Mutual Fund and HDFC Mutual Fund for selling their Mutual Fund Products. The bank Became a depository participant through NSDL to make available Demat facilities. TMB was the first bank in south India to offer ASBA facilities.[24] It also offers off-line and online share-trading through REligare Securities. TMB entered the commodity futures market by becoming a clearing bank for NCDEX and MCX. It was one of the first banks in the banking industry to have online deposit through the TMB e-connect facility.

Foreign Exchange[edit]

The bank had achieved a turnover of Rs. 16,402.5 crores in foreign exchange for the year ended March 2013. In terms of forex turnover, TMB ranks first among the Tamil Nadu-based private sector banks. With a view to provide enhanced facilities to the bank’s customers, the bank shifted its foreign exchange department from Tuticorin to Chennai, the home of its international banking division. TMB plans to expand its activity by creating an integrated Treasury and Foreign Exchange Operations Department with adequate infrastructure to handle trading in foreign exchange, derivatives, and the like. TMB is a member of the Society for Worldwide Interbank Financial Telecommunication (SWIFT).

Branch sharing tie up[edit]

TMB have tie-up arrangements with IDBI Bank (108 locations), and HDFC Bank (462 locations), giving it in effect a network of 794 branches.[citation needed]

Citations and references[edit]

Citations
  1. ^ a b http://www.tmb.in/press/bs_dec_2012_01.pdf
  2. ^ "Tamilnad Mercantile Bank targets Rs 50,000 crore business by 2013". 
  3. ^ a b "Knowing TMB - Answer To All Your Questions About Us : Get the Best Interest Rates on Deposits from the Best Indian Bank for NRI Deposits". Tmb.in. Retrieved 14 February 2012. 
  4. ^ "Whats New @ TMB". Tmb.in (6 September 2013).
  5. ^ "TMB to open branches in Colombo, Singapore". Business Standard. (8 October 2010).
  6. ^ "TMB’s total business in two districts crosses Rs. 323 crore". The Hindu. (26 June 2012).
  7. ^ " “TMB plans to open more branches” ". The Hindu. (8 October 2010).
  8. ^ "Tamilnad Mercantile Bank set for IPO". Business Standard. (18 July 2012).
  9. ^ "RBI asks Tamilnad Mercantile Bank to list shares through an IPO". The Economic Times. (7 May 2011).
  10. ^ "TMB set to go public, Appoints SBI Caps as advisor". Business Standard. (27 June 2013).
  11. ^ "India's best banks". Businesstoday.intoday.in (24 February 2008).
  12. ^ "Fastest Growing Banks". (PDF).
  13. ^ "Tamilnad Mercantile Bank ranked best among old private sector banks". The Economic Times. (30 March 2012).
  14. ^ "Rs.36,480-crore business by TMB". The Hindu. (27 June 2013).
  15. ^ " The bank that grew “extremely well in the last five years“ ". Business Line.
  16. ^ Shah, Pranali. (27 June 2013) "TMB Plans To Raise Funds and expand Outside India". Dealcurry.com.
  17. ^ "TMB banks on public float for growth". Business Standard. (9 July 2013).
  18. ^ "TMB wins banking excellence award"
  19. ^ Kanagasabapathi. Indian Models of Economy Business And Management. p. 274. ISBN 978-81-203-3423-6. 
  20. ^ "Tamil Nadu Mercantile Bank website". 
  21. ^ de S. Gunasekara (19620, p.184.
  22. ^ "The History of Tamilnad Mercantile Bank"
  23. ^ "TMB loan mela"
  24. ^ "TMB to offer ASBA facility"
References
  • de S. Gunasekera, H.A. (1962) From dependent currency to central banking in Ceylon; an analysis of monetary experience, 1825-1957. (London School of Economics and Political Science, University of London).

External links[edit]