 "Tamilnad Mercantile Bank AGM in January, on a single day Bank to convene and hold 6 AGMs")
After nearly five years, Tamilnad Mercantile Bank (TMB) is all set to hold its Annual General Meeting (AGM) in January. It may be noted some of the important proposals including the bank’s initial public offering plans are being held back since the bank could not hold its annual general meeting (AGM). Bank caught in a legal battles, which are fought by its shareholders at various Courts.
The 94-year old Thoothkudi-based bank held its 87th AGM on in January 2010. The 88th AGM was scheduled to be held on June 15, 2011. The same was injuncted by order of the Madras High Court. The court last month vacated the said order of injunction and directed the Bank to convene and hold all the six AGMs —88th to 93rd AGM on a single day within 70 days from the date of the order of the court.
Of the six AGMs, agendas (numbering to 12) for the 93rd Annual General Meeting (for 2015, due on or before September 30, 2015) includes issues of rights shares, Initial public offer of shares and others, stated in the Order. The development comes in a writ petition filed before the Division Bench and sought interim orders restraining the convening AGM pending the disposal of the Appeal. Justice M Sathyanarayanan and Justice P Devadass ordered notice in the writ appeal and after hearing the objections of the Bank refused to grant interim injunction.
The Bank now said that it is taking all the necessary steps to complete the process of convening the said meetings and hold the same on January 29, 2016 and transact the business slated therein. Earlier Bank's MD said that if the Bank able to resolve the issues which is holding back the conduct of AGM in the near future, it should be able to come to the market on tier-II bonds, we should also be prepare the organisation eventual IPO. TMB has reported a 27 per cent growth in net profit in 2014-2015 at Rs 379.40 crore as compared to Rs 300.77 crore, a year ago. Total Business of the Bank rose by 12.3 per cent to Rs 49,985 crore in 2014-15.
Advances increased by 12.79 per cent to Rs 19,335.95 crore from Rs 17,143.85 crore, while deposits increased by 13.27 per cent to Rs 25,649.86 crore from Rs 22,645.68 crore.
The Thoothukudi headquartered bank has brought the net NPA level to 0.67 per cent from 1.22 per cent. In quantum wise it dropped to Rs 128.96 cror from Rs 209.32 crore. Gross NPA dropped to 1.63 per cent from 2.46 per cent. In absolute terms it dropped to Rs 318.68 crore from Rs 428.02 crore
Bank's capital adequacy ratio (CRAR) stood at 13.89 per cent as compared to 15.59 per cent.
