Last year, the Tuticorin-based bank had earmarked ₹150 crore to implement a range of technology-driven upgrades.
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RAJESH N
Private sector Tamilnad Mercantile Bank is set to complete its digital transformation programme — commenced last year — in a phased manner within the financial year.
Last year, the Tuticorin-based bank had earmarked ₹150 crore to implement a range of technology-driven upgrades. These include development of Oracle Human Capital Management (HCM) software, Oracle CX-Customer Relationship Management (CRM) software, Vendor Management software for centralised expense management, and paperless automation of approvals.
“A sophisticated net banking platform (DEH) has been designed to enhance digital banking experiences for both retail and corporate clients. Ongoing projects such as website and mobile banking revamps are slated for phased completion within the current financial year,” the bank’s MD and CEO Salee S Nair told PTI.
The bank was also engaged in completely revamping the internet banking and have roped in IT major Infosys for this.
“I think, by December end we should also have that in place as an offering to customer through which whatever requirement you have at the branch you will be able to satisfy yourself. I think 70 odd services will be available through the internet banking,” he said.
On July 25, the lender declared its financial performance for April-June 2025 quarter registering a 6.27 per cent growth in net profit to ₹305 crore, as compared to a net profit of ₹287 crore recorded in the corresponding quarter of last financial year.
Nair noted that the reduction in provisions led to the growth in net profit during the June quarter.
Total income of the bank rose to ₹1,617 crore during the quarter under review as compared to ₹1,515 crore registered in the year ago period.
On the focus areas during the current financial year, he said during the second half of the financial year, the bank is expected to reap the benefits from various initiatives it had taken including expansion of branch network, upgrading technology, focus on MSME sector, gold loan portfolio among others.
“In my analysts call, I did mention that the growth in deposits will be in excess of 10 per cent year-on-year and our advances portfolio will be close to 15 per cent. This is all riding on the fact that the initiatives we have put in place. CASA (Current Account, Savings Account) which has been negative last year, has now come into positive territory at a growth of 4.51 per cent,” he said.
“The initiatives (taken by the bank) appear to bear fruits on the deposits side and the pace of growth in deposits is up from 4.64 per cent year-on-year to 9 per cent (April-June 2025) quarter and it will get accelerated in the second half. When we close the financial year (FY 25-26) we hope to close the year with much better numbers,” he remarked.
Published on August 3, 2025