According to recent press reports the board of Tamilnad Mercantile Bank has decided to declare a dividend of Rs 1,000 per share of Rs 10 each after taking on record the audited results for the fiscal ended March 31, 2011.
Mr A. K. Jagannathan, Managing Director and Chief Executive of Tamilnad Mercantile Bank, said that the outgo on the banks record of 10,000 per cent dividend would be Rs 28.45 crore which would be distributed after the annual general meeting.
The Net profit of the bank has grown up 36 per cent to Rs 250.90 crore in 2010-11 against Rs 184.53 rore in 2009-10. The total business of the bank went up 23 per cent to Rs 24,679 crore where the deposits increased by 18% to Rs 13,808 crore and the advances grew by 30 per cent to Rs 10,871 crore from Rs. 8,382 crore.
The bank had increased the Base Rate by 150 basis points in the last 12 months from 8 per cent to 9.5 per cent. It is now planning to hike it by another half percentage point to 10 where the rate of borrowal of loans such as Home Loan, Personal Loan, vehicle loan etc will go down likely.