Tamilnad Mercantile Bank (TMB) Focuses on MSME Growth, Partners with McKinsey for Strategy Development

Thoothukudi-based Tamilnad Mercantile Bank (TMB) is aiming to boost its Micro, Small, and Medium Enterprises (MSME) portfolio, engaging global consultancy firm McKinsey for strategic development. The bank’s efforts include setting up MSME hubs and expanding its branch network.

During the first quarter of the current financial year, the retail, agriculture, and MSME segment made up 92 per cent of TMB’s portfolio, increasing from 90 per cent last year. MSMEs alone account for around 35 per cent of this growth, with total business rising 12.03 per cent to ₹37,614 crore.

To further expand, TMB plans to open 40 new branches across various regions, targeting areas beyond Tamil Nadu, and focusing heavily on the MSME sector. Eight MSME hubs have already been set up, and the bank plans to introduce one hub per regional office across its 12 offices.

At its 102nd Annual General Meeting, Managing Director and CEO Salee S Nair emphasized TMB’s dedication to growth through collaboration, enhanced customer service, and compliance with regulatory frameworks. The bank also aims to advance its digital banking services and improve cybersecurity, while maintaining a net interest margin (NIM) of 4 per cent.

Additionally, TMB has brought on Vincent Menachery Devassy as its new Executive Director, focusing on operational excellence to ensure continued growth. The bank’s expansion strategy includes a focus on retail banking, MSME development, and digital transformation to optimize customer experience and financial stability.

Disclaimer: This information is based on public reports and statements made during TMB’s Annual General Meeting. The bank’s plans and strategies are subject to change based on market conditions and other factors. Readers should verify details with official bank sources before making any decisions related to TMB’s business or services.