Tamilnad Mercantile Bank (TMB), one of India's oldest private sector banks, has expressed strong optimism about achieving 15% credit growth for the financial year 2024-25.
In a recent interaction, the bank's MD and CEO, S. Krishnan, emphasized that the target is realistic given the institution’s stable financial base and regional expansion strategy.
"Achieving 15% credit growth should not be a challenge with the current market dynamics and our internal capacity," said Krishnan, noting increased demand from retail and MSME sectors.
The CEO's confidence comes on the back of consistent financial performance, improved loan recovery mechanisms, and growing demand for structured lending in semi-urban and rural areas. TMB has been focusing on expanding its retail, agriculture, and SME (RAM) segments, sectors that continue to show strong credit appetite.
The bank, headquartered in Thoothukudi, Tamil Nadu, has also been streamlining its digital lending operations and is poised to introduce several tech-driven services in FY25 to enhance customer experience and operational efficiency.
Key Highlights:
Credit Growth Target: 15% for FY25
Focus Areas: Retail, Agriculture, MSME lending
Tech Investments: Enhanced digital lending and CRM tools
Outlook: Strong credit demand in Southern India to fuel growth
About Tamilnad Mercantile Bank:
Founded in 1921, TMB operates with a strong legacy and presence across Tamil Nadu and other southern states. With over 500 branches and a focus on traditional banking with modern tools, the bank has carved a niche in India’s mid-size private banking sector.
Vizzve Finance Add-on Insight:
This blog post gained traction on Google Discover and Search Trends shortly after publication due to high-interest search queries like “TMB FY25 outlook”, “Private banks credit growth India”, and “S. Krishnan TMB updates”. Vizzve Finance analysis shows increased investor interest in regional private banks with digital ambitions.
Frequently Asked Questions (FAQs)
Q1. Why is Tamilnad Mercantile Bank targeting 15% credit growth in FY25?
TMB sees strong demand in the retail and MSME sectors, particularly in semi-urban and rural markets, supported by its healthy capital position and robust risk management.
Q2. What steps is TMB taking to achieve this growth?
The bank is expanding in key sectors like RAM (Retail, Agriculture, MSME), enhancing its digital lending capabilities, and launching customer-centric initiatives.
Q3. Is TMB focusing only on Tamil Nadu?
No, while Tamil Nadu remains a core market, the bank is increasing its footprint across South India and select northern regions.
Q4. What is Vizzve Finance’s take on this development?
According to Vizzve Finance, the growth target is realistic. With a stable CASA ratio and low NPAs, TMB’s approach reflects sound banking fundamentals amid rising credit demand.
Published on: July 29, 2025
Published by: selvi
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