MIRA INFORM REPORT

Report Date :

12.06.2013

IDENTIFICATION DETAILS

Name :	TAMILNAD MERCANTILE BANK LIMITED
Registered Office :	57, Victoria Extension Road, Thoothukudi-628002, Tamilnadu
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	11.05.1921
Com. Reg. No.:	18-001908
Capital Investment / Paid-up Capital :	Rs. 2.845 Millions
CIN No.: [Company Identification No.]	U65110TN1921PLC001908
TAN No.: [Tax Deduction & Collection Account No.]	MRIT00533B/ MRIT01537E/ MRIT01177B/ CHET01129C
PAN No.: [Permanent Account No.]	AAACT5558K
Legal Form :	Public Limited Liability Bank.
Line of Business :	Subject is engaged in banking activities.
No. of Employees :	2855 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (70)

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Maximum Credit Limit :	USD 740000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Exists
Comments :	Subject is a well established and reputed bank having fine track record. There appears increase in income as well as net profitability during 2012. However, financial position of the bank is good. Directors are reported as experienced and respectable businessmen. Trade relations are reported as fair. Payments are reported to be regular and as per commitments. The bank can be considered good for normal business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Certificate of deposits programmer = A1+
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	27.09.2012

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office :	57, Victoria Extension Road, Thoothukudi-628002, Tamil Nadu, India
Tel. No.:	91-461-2321382 /2321929 / 2321932 /2321971 / 2325381 /2325831
Fax No.:	91-461-2322994
E-Mail :	tmbankhi@md3.vsnl.net.in tmbankms@md3.vsnl.net.in tmbankho@sancharnet.in ramanathapuram@tnmbonline.com
Website :	http://www.tamilnadmercantilebank.com http://www.tmb.in

DIRECTORS

As on: 31.12.2011

Name :

Mr. Arvamuthan Kannan Jagannathan

Designation :

Managing Director

Address :

5T/4, TMB Pearl House, Ganesh Nagar, Thoothukudi-628008, Tamilnadu, India

Date of Birth/Age :

12.04.1950

Date of Appointment :

23.09.2010

DIN No.:

03273392

Name :

Mr. Balkrishnan Prabhakaran

Designation :

Additional director

Address :

4/3A, Kasthuribai Road, Virudhunagar – 626001, Tamilnadu, India

Date of Birth/Age :

08.07.1955

Date of Appointment :

16.04.2011

DIN No.:

00209875

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U17111TN1962PLC004842	Sree Ayyanar Spinning And Weaving Mills Limited	Whole-time director	11/12/2011	21/09/2005	-	Active	NO
2	U65110TN1921PLC001908	Tamilnad Mercantile Bank Limited	Additional director	16/04/2011	26/11/2009	-	Active	NO

Name :

Mr. Vikraman Nithayanandham

Designation :

Director

Address :

2/3C /12, Ganesh Nagar, Thoothukudi-628008, Tamilnadu, India

Date of Birth/Age :

11.04.1953

Date of Appointment :

26.11.2009

DIN No.:

00466250

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U25209TN1982PTC009567	Neatvin Enterprises Private Limited	Director	13/09/1982	13/09/1982	-	Active	NO
2	U63023TN1993PTC026041	City Ware Housing And Container Complex Private Limited	Director	18/10/1993	18/10/1993	-	Active	NO
3	U20211TN1993PTC024639	Vvd Package Industries Private Limited	Director	22/01/1996	22/01/1996	-	Active	NO
4	U52321TN1986PTC012745	Alangarathattu Trading And Warehousing Company Private Limited	Director	20/02/1998	20/02/1998	-	Active	NO
5	U21022TN2004PTC054903	Win Win Package Private Limited	Director	13/12/2004	13/12/2004	-	Active	NO
6	U24117TN1965PLC005308	Ramnad Chemical Works Limited	Managing director	30/09/2005	30/09/2005	-	Active	NO
7	U65110TN1921PLC001908	Tamilnad Mercantile Bank Limited	Director	26/11/2009	26/11/2009	-	Active	NO

Name :

Mr. Pandian Mahendravel

Designation :

Director

Address :

99, A17, Lakshmi Sundaram Enclave, Sammattipuram, Usilampatti Road, Madurai - 625 010, Tamilnadu, India

Date of Birth/Age :

14.03.1961

Date of Appointment :

26.11.2009

DIN No.:

00688302

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74130TN1999PTC041865	Perry Marketing Private Limited	Managing director	08/02/1999	08/02/1999	-	Strike off	NO
2	U65110TN1921PLC001908	Tamilnad Mercantile Bank Limited	Director	26/11/2009	26/11/2009	-	Active	NO
3	U15412TN2011PTC079978	Perrys Biscuits Private Limited	Director	01/05/2012	01/04/2011	-	Active	NO

Name :

Mr. Yesuthasen Pathiudian

Designation :

Additional director

Address :

4B, Cross Street, Sri Nagar Colony, Chennai - 600 015, Tamilnadu, India

Date of Birth/Age :

22.04.1946

Date of Appointment :

16.04.2011

DIN No.:

00767702

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U72200TN2000PTC046103	Phaeros It India Private Limited	Whole-time director	13/11/2000	13/11/2000	-	Active	NO
2	U65929TN2002NPL048847	Ecumenical Church Loan Fund Of India	Director	29/04/2004	29/04/2004	25/09/2008	Active	YES
3	U74130MH2008PTC244119	Gist Advisory Private Limited	Director	09/09/2008	09/09/2008	-	Active	NO
4	U65110TN1921PLC001908	Tamilnad Mercantile Bank Limited	Additional director	16/04/2011	26/11/2009	-	Active	NO

Name :

Mr. Shanmugam Rajendran Aravindkumar

Designation :

Director

Address :

45, New Colony, Thoothukudi - 628 003, Tamilnadu, India

Date of Birth/Age :

12.04.1973

Date of Appointment :

26.11.2009

DIN No.:

02145836

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U51909TN2000PTC044392	Ideasflow Systems Private Limited	Director	15/03/2000	15/03/2000	-	Active	NO
2	U15314TN1951PLC002593	SRI BHARATHI RICE And MAVU MILLS LTD	Director	19/04/2006	19/04/2006	31/03/2012	Active	NO
3	U65110TN1921PLC001908	Tamilnad Mercantile Bank Limited	Director	26/11/2009	26/11/2009	-	Active	NO

Name :

Mr. Subbunadar Chandrasekar

Designation :

Director

Address :

No.19, White House, Thambhusamy Road, Kilpauk, Chennai - 600 010, Tamilnadu, India

Date of Birth/Age :

23.12.1955

Date of Appointment :

26.11.2009

DIN No.:

02174506

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U23209TN1996PTC034144	Southern Petro Oils Private Limited	Managing director	10/01/1996	10/01/1996	-	Active	NO
2	U23209TN1996PTC035519	Sun Petro Products Private Limited	Director	05/11/2002	05/11/2002	-	Active	NO
3	U70101TN2004PTC052689	Sgs Land Holdings Private Limited	Director	08/03/2004	08/03/2004	-	Active	NO
4	U51101TN2006PTC059184	Scs Agro Impex Private Limited	Managing director	15/03/2006	15/03/2006	09/02/2009	Active	NO
5	U65110TN1921PLC001908	Tamilnad Mercantile Bank Limited	Director	26/11/2009	26/11/2009	-	Active	NO
6	U70109TN2012PTC085750	Southerns Realty Private Limited	Director	04/05/2012	04/05/2012	-	Active	NO

Name :

Mr. Thirukumar Vethanayagam

Designation :

Additional director

Address :

M/s. Bloom Energy (India) Private Limited, Plant 19A, Godrej and Boyce Mfg. Co., L.B.S. Marg, Vikhroli (W), Mumbai - 400 079, Maharashtra, India

Date of Birth/Age :

03.12.1958

Date of Appointment :

16.04.2011

DIN No.:

02873163

Name :

Mr. Srinivasan Sundar

Designation :

Director

Address :

2, ‘B’ Sahas Manor, 3C, III Street, North Boag Road, T. Nagar, Chennai - 600 017, Tamilnadu, India

Date of Birth/Age :

15.05.1942

Date of Appointment :

06.01.2010

DIN No.:

00115315

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U93090TN1949SGC001458	Tamilnadu Industrial Investment Corporation Limited	Director	20/09/2005	20/09/2005	-	Active	NO
2	U65110TN1921PLC001908	Tamilnad Mercantile Bank Limited	Director	06/01/2010	06/01/2010	-	Active	NO

Name :

Mr. Kaippilly Narayanan Rajan

Designation :

Nominee Director

Address :

B-1, Kaippilly, Ullas Nagar, Peroorkada, Trivandrum - 695 005, Kerala, India

Date of Birth/Age :

01.10.1951

Date of Appointment :

11.01.2010

DIN No.:

02963834

Name :

Mr. Rajan Valappil Kiliyam

Designation :

Nominee Director

Address :

Block 5A, Flat No.101, Hansa Chitra Aptment, 91, Darga Road, Pallavaram, Chennai - 600 043, Tamilnadu, India

Date of Birth/Age :

10.05.1950

Date of Appointment :

11.07.2010

DIN No.:

03184355

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Shareholders Is Not Available

Equity Share Break up (Percentage of Total Equity)

As on: 31.12.2011

Category	Percentage
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	16.89
Bodies corporate	13.53
Directors or relatives of directors	5.05
Other top fifty shareholders	30.73
Others	33.80
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in banking activities.

GENERAL INFORMATION

No. of Employees :

2855 (Approximately)

Bankers :

Reserve Bank of India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
I. Borrowings in India
i. Reserve Bank of India	700.000	350.000
ii. Other Banks	3759.733	0.000
iii. Other Institutions and Agencies	0.000	0.000
II. Borrowings outside India	147.000	135.000
Total	4606.733	485.000

Banking Relations :	--
Auditors :
Name :	Suri and Company Chartered Accountants
Address :	No.4, Chevalier Sivaji Ganesan Road, Thyagarayanagar, Chennai – 600017, Tamilnadu, India
PAN No.:	AABFS5023Q

CAPITAL STRUCTURE

As on: 31.12.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
284454	Equity Shares	Rs.10/- each	Rs. 2.845 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		2.845	2.845	2.845
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		16345.598	13657.318	11478.944
4] Deposits		171104.399	137932.918	116393.013
NETWORTH		187452.842	151593.081	127874.802
LOAN FUNDS
1] Secured Loans		4606.733	485.000	600.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		4606.733	485.000	600.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		192059.575	152078.081	128474.802
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		775.261	532.034	504.424
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		48902.678	37671.384	34991.863
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Balance with Banks and Money at call and short Notice	284.727	507.003	2751.330
	Cash & Bank Balances	6960.762	8583.288	9192.341
	Other Current Assets	8380.091	6292.811	5539.398
	Loans & Advances	137788.627	107586.524	82876.072
Total Current Assets		153414.207	122969.626	100359.141
Less : CURRENT LIABILITIES & PROVISIONS
	Other Current Liabilities	11032.571	9094.963	7380.626
	Provisions	0.000	0.000	0.000
Total Current Liabilities		11032.571	9094.963	7380.626
Net Current Assets		142381.636	113874.663	92978.515
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		192059.575	152078.081	128474.802

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income (Interest Earned)	18823.916	13710.437	11184.059
		Other Income	2316.580	1883.407	1727.963
		TOTAL	21140.496	15593.844	12912.022
Less	EXPENSES
		Operating Expenses	3490.412	2980.238	2314.493
		Provision and Contingencies	2195.305	1833.121	1313.715
		TOTAL	5685.717	4813.359	3628.208
Less	PROFIT BEFORE INTEREST, TAX, AND AMORTISATION		15454.779	10780.485	9283.814
Less	FINANCIAL EXPENSES		12320.189	8271.511	7438.519
	PROFIT BEFORE TAX		3134.590	2508.974	1845.295
Less	TAX		0.000	0.000	0.000
	PROFIT AFTER TAX		3134.590	2508.974	1845.295
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		9.562	0.188	0.767
Less	APPROPRIATIONS
		Transfer to Statutory Reserve	941.000	753.000	553.600
		Transfer to Other Reserve	1620.000	1335.000	995.000
		Transfer to Investment reserve	31.790
		Transfer to Investment reserve	100.000	81.000	48.500
		Proposed Dividend	128.004	284.454	213.340
		Tax on Dividend	20.766	46.146	35.434
	BALANCE CARRIED TO THE B/S		302.592	9.562	0.188
	Earnings Per Share (Rs.)		11020.00	8820.32	6487.15

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	14.82	16.09	14.29
Net Profit Margin (PBT/Sales)	(%)	16.65	18.30	16.50
Return on Total Assets (PBT/Total Assets}	(%)	2.03	2.03	1.83
Return on Investment (ROI) (PBT/Networth)		0.01	0.01	0.01
Debt Equity Ratio (Total Debt/Networth)		0.02	0.00	0.00
Current Ratio (Current Asset/Current Liability)		13.90	13.52	13.60

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	Yes
23]	Banking Details	Yes
24]	Banking facility details	No
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

CASE STATUS

LITIGATION DETAILS
CHENNAI COURT CASE STATUS INFORMATION SYSTEM
Case Status:	Pending
Status Of:	APPLICATION
Case No.:	1979
Year :	2005
Petitioner :	RESERVE BANK OF INDIA
Respondent :	TAMILNAD MERCANTILE BANK
Pet's Advocate :	M/S.KING AND PARTRIDGE
Res's Advocate :	M/S.T. MOHAN
Category :	NO CATEGORY MENTIONED
	Last Listed on: No Date Mentioned
Case Updated on :	Dec 17 2012

PAN FOR CORPORATE AGENTS

The Authority advised all insurers on 11th July, 2010 through the agency portal to update the income tax PAN number of their corporate agents on the agent licensing web portal before 31st July, 2010.


We are herewith appending the list of 884 corporate agents existing in IRDA’s Agency License Portal, where the PAN of Corporate Agents have not been registered so far. In this respect, the insurers are advised to issue a show cause notice to the Corporate Agents under intimation to the Authority to furnish reasons for failure to produce the PAN number and why the Insurer should not recommend to the Authority for the cancellation of their corporate agent license.

The above exercise shall be completed before 30th September, 2010. The insurers shall abstain from doing any business from these corporate agents, until the PAN of the entities is registered in the portal by the insurers.

OVERALL ECONOMIC REVIEW

After two successive years of fairly robust growth of 8.4 percent, GDP is estimated to decelerate sharply to 6.9 % during 2011-12, with a marked slow down in agriculture, mining and quarrying, manufacturing and construction sectors. While the moderation of growth in agriculture was largely on account of the base effect and structural impediments, the slow down in industry reflected a number of factors including domestic policy uncertainties, cumulative impact of monetary tightening and slackening of external demand. Inflation in 2011-12 evolved broadly along the trajectory projected by the Reserve Bank. The March 2012 inflation at 6.9 % was close to the Reserve Bank’s indicative projection of 7%.

BANKING SCENARIO

The domestic financial system remained robust though risks to stability increased in the recent period. Stress tests also revealed that banks’ capital adequacy remained above regulatory requirements even under severe stress scenarios. The findings of Systemic Risk Survey (SRS) instituted by RBI reaffirmed the stability of the system. However, according to the survey, deterioration in asset quality was identified as one of the major risks faced by banks.

The divergence between credit and the deposit growth rate had narrowed during the first three quarters of 2011-12. The sharper deceleration in deposit growth during Q4 of 2011-12 and turn around credit growth during March 2012 however caused the divergence to increase. As deposit growth moderated, commercial banks recourse to non deposit sources of finance (viz. borrowings) increased. The deceleration in year on year non food credit growth was contributed by all the sectors viz. agriculture, industry, services and personal loans.

Reflecting the deceleration in growth and the introduction of system driven identification of NPAs by Public Sector Banks (PSBs), the asset quality of PSBs deteriorated sharply during 2011-12. Further, the Capital to Risk Weighted Assets Ratio (CRAR) of commercial banks particularly nationalized banks declined during 2011-12.

Monetary and liquidity conditions remained tight during 2011-12. Liquidity turned excessively tight since November 2011 reflecting sudden large outflows. In recognition of the downside risks to growth during the latter part of 2011-12, the RBI stepped up injecting discretionary liquidity through OMO purchases and CRR cuts. As a result, liquidity deficit has declined considerably.

A brief analysis of the progress made under Financial Inclusion Plans of banks shows that penetration of banks in rural areas has increased manifold. While all the efforts made for financial inclusion have expanded the access to banking services, it is also important that quality services are provided through newly set up ICT based BC delivery model.

The Government of India has already initiated some measures as a working group constituted by them proposed the introduction of unique identification for customers across different banks and financial institutions. While such a system for the entire financial system is desirable it is likely to take quite some time for a complete roll out.

BUSINESS PERFORMANCE

The Bank had a successful year in its 90th year of operations and recorded an all-round good performance. During the year, the total business increased from Rs.245520.000 millions to Rs.308890.000 millions registering a growth of 25.81%. There was significant improvement in recovery of bad debts due to prudent Recovery measures. The gross NPAs as a percentage of total advances got reduced marginally.

PERFORMANCE HIGHLIGHTS:

Ø The Net profit grew from Rs.2509.000 Millions to Rs.3134.600 Millions (+24.93 %).

Ø The deposits of the Bank increased from Rs.137930.000 Millions to Rs. 171100.000 Millions (+24.05%) during the year.

Ø The advances increased from Rs. 107590.000 Millions to Rs. 137790.000 Millions (+28.07%) during the year.

Ø The Gross NPA came down from 1.30% to 1.28%.

Ø The Net NPA increased from 0.27% to 0.45%.

The total income increased by Rs.5550.000 Millions during the year from Rs.15590.000 Millions in the previous year to Rs.21140.000 Millions during the year representing 35.60% growth.

Interest income rose by about Rs.5110.000 Millions from Rs.13710.000 Millions to Rs.18820.000 Millions and other income rose from Rs.1880.000 Millions to Rs.2320.000 Millions during the current year. The increase in total expenditure was at Rs.4558.900 Millions. The interest expenditure rose from Rs.8270.000 Millions during the previous year to Rs.12320.000 Millions during the year.

Earnings per share rose to Rs.11,020 from Rs.8,820.

PROFIT AND APPROPRIATION

The net profit stood at Rs.3134.600 Millions (previous year Rs.2509.000 Millions) after making all necessary provisions under various categories as per prudential norms prescribed by Reserve Bank of India. After adding thereto the surplus of Rs.9.600 Millions brought forward from 2010-2011 there is an available balance of Rs.3144.200 Millions which has been appropriated as under:

Transfer to	31.03.2012 Rs. in Millions
Statutory Reserve	941.000
Special Reserve U/s 36(1) (viii) of IT Act, 1961	100.000
Investment Reserve	31.800
General Reserve	1620.000
Proposed Dividend for the year	128.000
Tax on Dividend	20.800
Interim Dividend including Tax	297.500
Balance carried over to next year	5.100
Total	3144.200

CAPITAL AND RESERVES

The Capital and Reserves of the Bank stand increased to Rs.16348.400 Millions from the previous year’s level of Rs.13660.200 Millions, showing an increase of 19.68% after effecting the above proposed appropriations.

CAPITAL ADEQUACY

The accretion to capital funds during the year amounted to Rs.2688.200 Millions which raised the net worth of the Bank to Rs.16348.400 Millions. The Capital to Risk weighted Assets Ratio (CRAR – BASEL II) stood at 14.69% as on 31-03-2012 which is more than the minimum required level of 9% stipulated by Reserve Bank of India.

DEPOSITS GROWTH

The aggregate year-end deposits of the bank as on 31.03.2012 was at Rs.171104.400 millions, with 24.05% growth over the position as at the end of the previous year. The interest rates for deposits are kept in line with the prevailing trends in the banking industry.

ADVANCES PORTFOLIO – MANAGEMENT OF ASSETS AND DEVELOPMENT OF BUSINESS

The Bank continued its lending activities in conformity with the policies and guidelines of Reserve Bank of India. Total Advances of the Bank increased by Rs.30202.100 millions during the concluded financial year 2011-12 and reached the level of Rs.137788.600 millions showing a Year on Year Growth of 28.07%.

The bank continued its thrust in lending to Agriculture, Micro and Small Enterprises consisting of both Manufacturing and Service Enterprises. The level of advances to priority sector stood at Rs.59419.600 Millions as on 31.03.2012 which constituted 54.66% of Adjusted Net Bank Credit against the regulatory priority sector target of 40%.

The Agricultural Advances reached Rs.22984.200 Millions as on 31.03.2012 which constituted 21.14% of Adjusted Net Bank Credit as against the regulatory requirement of 18%.

The total weaker section advances reached Rs.15164.400 millions as on 31.03.2012 which represent 13.95% of Adjusted Net Bank Credit as against the regulatory requirement of 10.00%.

The bank continued its thrust on Schematic Retail Lending as a measure to boost up advances growth and clientele base. Total Schematic Retail Advances went up by Rs.7843.500 Millions during the Financial Year and reached the level of Rs.31181.300 Millions showing a Year-on-Year Growth of 33.61%.

The advances granted to export sector by the bank decreased from Rs.2665.500 millions to Rs.2645.600 Millions as on 31.03.2012. Efforts are being taken to step up the flow of credit to export sector.

The total advances to MSME Sector increased by Rs.6942.200 Millions during the Financial Year and reached the level of Rs.36027.100 Millions.

As a measure to uplift economically downtrodden people, the bank continued its thrust in lending to Self Help Groups (SHG) and the total number stood at 2491 Groups as on 31.03.2012 during the Financial Year with an outstanding of Rs.200.400 Millions. As on 31.03.2012, 3,058 customers have been benefited from DRI scheme.

INVESTMENTS AND TREASURY OPERATIONS

During the year ended 31st March 2012, the Bank made a total turnover of Rs.106260.600 millions in trading operations, resulting in a net profit of Rs.79.200 millions, as against Rs.61.700 millions in previous year. There was no sale of securities from ‘Held to Maturity’ category during the year.

The net investments of the Bank stood at Rs.48903.700 millions as on 31st March 2012 as against Rs.37671.400 millions as at the end of previous year. The investment to Deposit Ratio of the Bank was 28.63% as against 27.37% at the end of the previous year.

The average realized yield on the investment portfolio during the year was at 7.65% as against 7.38% in the previous year, reflecting the general rise in interest rates during the second half of the year. The income from investments, comprising interest income and dividend income, earned during the year was Rs.3418.600 millions (including RIDF) as against Rs.2861.100 millions in the previous year. During the year, the Bank shifted securities of the value of Rs.3587.200 millions from ‘Available for Sale’ (AFS) category to ‘Held to Maturity’ (HTM) category, after charging depreciation of Rs.38.200 millions. There was no shifting of securities from ‘Held to Maturity’ category to ‘Available for Sale’ category and from ‘Held for Trading’ to ‘Available for Sale’ category during the year.

FOREIGN EXCHANGE BUSINESS

During the year 2011-12, their Bank had good growth in the foreign exchange Business. The total merchant turnover increased from Rs.104235.400 millions to Rs.120880.00 millions and registered a growth rate of 15.97% compared to previous year. The profit on foreign exchange business for the year 2011-12 was Rs.280.700 millions as against Rs.231.000 millions during the previous year 2010-11 with 21.52% growth. During the year Guntur, Pavoorchatram and Sankarankovil branches were authorized to handle foreign exchange transactions and the total number of ’B’ category branches to deal foreign exchange business stood at 34.

The Bank is having adequate infrastructure to render speedy service relating to inward remittance and for crediting the beneficiary’s accounts on receipt of the foreign currency funds in their Nostro accounts abroad.

The Bank has a global network of 700 overseas Banks with whom bilateral keys under SWIFT (Society for Worldwide Interbank Financial Telecommunication) arrangement have been exchanged. It facilitates smooth and fast flow of communication in the international business. The swift arrangement has enabled the bank to give timely and efficient service to its foreign exchange customers.

The Bank has tie-up arrangement with UAE Exchange centre LLC, Abu Dhabi. This arrangement enables the NRIs, and their relatives to receive the fund transfers within 24 hours from UAE under speed remittance scheme. Efforts are being taken to increase the tie-up arrangement with more number of exchange houses to attract more NRI customers.

The International Banking Division, Chennai is providing information on foreign exchange market and market rates in their bank website to facilitate their clients to know the up to date information on forex. Their officers are deputed to specialized training in foreign exchange given by leading training centers in Mumbai, Pune etc, to keep pace with the day to day changing forex scenario.

The Bank is committed to increase the forex turnover significantly by adding good revenues to the bank in the coming year.

BRANCH NETWORK

During the year 2011-12, the Bank opened 47 branches and 130 Automated Teller Machines and formed a new Region viz. Bangalore Region. With the above expansion the branch network increased to 280 branches, 8 Regional Offices, 11 Extension Counters, 312 ATMs, 7 Central Processing Centres, 2 Mobile Branch Banking units, 2 Currency Chests and 1 Service Branch.

NEWS

FINANCIAL PERFORMANCE OF THE BANK FOR THE YEAR 2011-12

Tamilnad Mercantile Bank Limited [TMB] is a premier old Private Sector Scheduled Commercial Bank having Head Quarters in the south of Tamil Nadu. The Bank has a long cherished history of 90 years of successful banking with continuous profit record and with strong financial fundamentals.

At present, the bank is having 285 branches, 318 Automated Teller Machines, 2 Mobile Branch Banking units, 9 Regional Offices and spread over 11 states and 3 Union Territories TMB serves its more than 2.8 million delighted customers. All the branches are fully computerized and inter connected with each other (through Core Banking Software “FINACLE” of INFOSYS) and enabled with Anywhere Banking/Internet Banking/Mobile Banking/RTGS/NEFT/WUMT facilities.

The Bank has been declared No.1 Best Bank among old private sector banks by Financial Express – Ernest and Young Best Bank Survey 2010-11. (Profitability, Efficiency, Credit Quality, Strength and Soundness and Growth)

Business World in its survey on INDIA’S BEST BANKS-2011 has ranked the Bank as

Ø 2nd Best Bank in Small Banks Category (Out of 17 Banks)

Ø 3rd Socially Responsible Bank among 57 Banks of the Country

Ø 5th Fastest Growing Bank among 17 Small Sized Banks

FINANCIAL PERFORMANCE OF THE BANK FOR THE YEAR 2011-12

The Board of Directors of Tamilnad Mercantile Bank Limited took on record the audited results for the year ended 31.03.2012 at the meeting held at Tuticorin on 3rd May, 2012. Shri. A. K. Jagannathan, Managing Director and CEO of the bank, in a press meet, has made the following announcement:

THE SCORECARD

(Rs. in Millions)

Particulars	2010-11 (12 Months)	2011-12 (12 Months)	% of growth	2010-11 Q4 (3 Months)	2011-12 Q4 (3 Months)	Growth (%)
Net Profit	2509.000	3134.600	24.93	723.400	1200.900	66.01
Operating Profit	4338.900	5328.700	22.81	1357.000	1989.900	46.64
Net interest Income	5438.900	6503.800	19.58	1574.900	1821.100	15.63
Other Income	1880.300	2315.400	23.14	615.300	827.200	34.44
CAR (%) Basel II	151.300	146.900	-
Gross NPA (%)	13.000	12.800	-
Net NPA (%)	2.700	4.500	-
Net Interest Margin (%)	42.500	40.900	-

The bank has achieved tremendous momentum and progress towards sustained growth during the fiscal year 2011-12. A determined business strategy and relentless efforts of the management team along with TMB ians have resulted in significant growth of business while adding several new products and services to cater to the needs of the customers.

The total business of the bank at the end of March 2012 is Rs.31034 crore with a growth rate of 25.75%.

The Bank’s deposit portfolio recorded a growth rate of 24.11% during the year to touch Rs.171370.000 millions which is over and above the industry level growth rate of 17.40%. The advances crossed Rs.138970.000 millions and registered a robust growth of 27.84% as against the industry level growth rate of 19.30%.

The productivity measured by Business per employee improved to Rs.108.200 millions from Rs.97.000 millions and Business per branch grew to reach Rs.1108.400 millions from the previous year level of Rs.1059.200 millions. The profit per employee has increased to Rs.1.098 million from Rs.0.991 million.

CREDIT TO PRIORITY SECTOR

By conscious design, the Bank gave much thrust to productive sectors like Agriculture, SME, Education etc.,

Advance to Priority sector has increased from Rs.46427.900 millions to Rs.59419.600 millions with 54.66% to the total advance surpassing the mandated minimum requirement of 40%.

Advance to Agriculture has been increased to Rs.22984.200 millions which constituted 21.14% of the bank’s adjusted net bank credit (ANBC) which is also more than the regulatory requirement of 18%.

Thrust has also given to increase Education Loan portfolio and as a result the amount of advance given for education has increased to Rs.1214.100 millions (an increase of 29.84% from 31.03.2011 [Rs.935.100 millions]).

PROFITABILITY

Q ON Q PERFORMANCE

The Bank has achieved a tremendous growth in Net Profit during Q4 with 66.01% growth. The profit after tax has increased from Rs.723.400 millions to Rs.1200.900 millions. The Net Interest Income has increased from Rs.1574.900 millions to Rs.1821.100 millions during Q4. Other income has grown by 34.44% from Rs.614.300 millions to Rs.827.200 millions due to recovery in written off accounts.

Y-O-Y PERFORMANCE

Total income recorded a y-o-y growth of 35.60% to reach Rs.21140.000 millions compared to Rs.15590.000 millions during the preceding financial year. Sustaining the core earnings growth, the Bank’s interest income recorded a y-o-y growth of 37.30%. The noninterest income has grown to Rs.2315.400 millions from Rs.1880.300 millions due to the sustained initiative taken by the bank in cross selling their various third party products and good recovery in written off accounts.

The Capital to Risk Adjusted Assets Ratio (CRAR) as per Basel II stood at 14.69% which is above the minimum required level of 9% stipulated by RBI.

The operating profit of the Bank rose to reach Rs.5328.700 millions registering a growth rate of 22.81% for the year ended 31st March 2012.

The net profit of the Bank rose to reach Rs.3134.600 millions registering a growth rate of 24.93% for the year ended 31st March 2012. The Earnings per Share (EPS) has improved from Rs.8820/- to Rs.11020/-. Return on assets is 1.75% (1.74%)

ASSET QUALITY

Sustained focus on Recovery, asset quality, stringent mechanism for credit review and monitoring helped to keep NPA level under control. Though the Gross NPA slightly moved up from Rs.1410.000 millions to Rs.1770.000 millions, the percentage has declined from 1.30% to 1.28%. The Net NPA % is at 0.45%.

MAJOR INITIATIVES TAKEN DURING THE YEAR 2011-2012

Ø Online equity Trading introduced

Ø Online deposit opening introduced.

Ø Launched Instant Debit Card – TMB Pearl International Debit Card.

Ø Introduced Mobile Banking Service – “TMB M Banking” by Shri. G. Padmanabhan, Executive Director of Reserve Bank of India, Mumbai.

Ø TMB 20-20 Deposit Scheme launched.

Ø Introduced new loan schemes TMB Dhall Mill and TMB Transport Operators.

Ø NRI Cell formed.

Ø Tie up with HDFC Mutual Fund.

Ø The Bank became the Corporate Agent for Life Insurance Business with Life Insurance Corporate of India.

Ø Tie up with Corporation Bank along with its service providers MRL – Posnet and PRIZM for “Acquiring Business” (Point of Sales).

Ø Tie up with UAE Exchange and Financial Services Limited for offering Xpress Money Services.

Ø Launched Financial Inclusion Programme on 30.07.2011 at Karadipatti Village, Madurai by Dr. K. C. Chakraparthy, Deputy Governor, Reserve Bank of India, Mumbai and extended the Financial Inclusion Programme to 34 villages.

BUSINESS PLAN BUDGET FOR THE FY 2012-13

Ø To increase the branch network to 330 by adding 50 new branches and increase the ATM network to 500 by adding 188 new A.T.Ms centres.

Ø Net Profit of Rs.4000.000 Millions

Ø Business Volume of Rs.408850.000 Millions

Ø Deposits Rs.223850.000 Millions

Ø Advances Rs.185000.000 Millions

Ø CASA Rs. 50000.000 Millions

Ø Forex Budget/Turnover Rs.150000.000 Millions

NEW INITIATIVES PLANNED FOR THE YEAR 2012-13

Ø Enrollment as Point of Presence [Pop] under National Pension System of Pension Fund Regulatory and Development Authority.

Ø Retailing of Gold Coins through Tie-up

Ø Wealth Management Service

Ø Payment Gateway Service – Times Money

Ø Tie up with Sundaram Mutual Fund.

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 58.92
UK Pound	1	Rs. 91.81
Euro	1	Rs. 78.18

INFORMATION DETAILS

Report Prepared by :

DPH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--CREDIT LINES	1~10	8
--MARGINS	-5~5	---
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		70

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.