A recent press report said that the net profit of Tuticorin based Tamil Nadu Mercantile Bank for the second quarter ended September of this fiscal year has been dropped by 1.5 per cent to Rs. 64.74 crore compared to the corresponding period last year.
The bank’s board has determined to pay an interim dividend of 9000 per cent to Rs. 900 per share of Rs. 10. The expenditure on this account would be Rs. 25 crore.
In a statement Mr. A.K. Jagannathan, the Managing Director and Chief Executive Officer of Tamil Nadu Mercantile Bank said that the bank’s board for the first time in the history of the bank has decided to pay an interim dividend.
He also said that the bank’s board agreed to pay dividend at the rate of Rs. 750 per share for the financial year ended March 2009 and Rs.1000 per share for the following year but due to a stay obtained in the Annual General Meeting the dividend could not be released and once the issue is solved the dividend amount would be released and paid.
Mr. Jagannathan said that the bank was able to an improvement in its net profit only by 3.43 per cent to Rs. 115.21 crore during the first half of 2011 – 2012 against the corresponding period of the previous year due to high provisioning.
Recently the bank had announced a “Festival Bonanza” for home and car loans with reduced rate of interest.