tamilnad mercantile bank ltd share price Management discussions

A. INDUSTRY STRUCTURE AND DEVELOPMENTS.

GLOBAL ECONOMY

The global economy was impacted by successive waves of the COVID-19 pandemic by early 2022. The recovery of the same aided by the large policy stimulus and expanding coverage of vaccination, was jolted by the war in Ukraine. The gains achieved through concerted fiscal and monetary policy interventions during the pandemic period (2020 and 2021) were undermined by the impact of the war. Inflation grew from ~2% to ~9% across US and EU between 2017-2022, as a result of the monetary & fiscal stimulus during the pandemic. In response, central banks have aggressively hiked interest rates by +450 bps and +350 bps in US and ECB respectively to counter the effect of higher inflation. A generalized surge in global inflation triggered monetary policy actions by central banks in the form of successive interest rate increases and the pulling back of liquidity, leading to tightening of financial conditions and together with other factors.

This had a toll on growth, which slowed from 6.2 per cent in 2021 to 3.4 percent in 2022, according to the International Monetary Fund.

However, due to the various actions including stimulus given by Central Banks across the world,

Global inflationis expected to fall from 8.7% in 2022 to 7% in 2023 and <5% in 2024, still above pre-pandemic levels.

Overall, the prospects for the global economy continue to be shadowed by high inflation, the adverse effects of geo-economic fragmentation operating through restrictions on movements of trade, labour, capital and diffusion of technology and potential amplification of financial sector vulnerabilities.

DOMESTIC ECONOMY

A sustained recovery in discretionary spending, particularly in contact intensive services, restoration of consumer confidence, high of COVID-19 induced isolation and the Governments thrust on capex, provided impetus to the growth momentum. In the second half of the year, however, the pace of year-on-year growth moderated because of unfavorable base effects, weakening private consumption demand caused by high inflation,slowdown in export growth and sustained input cost pressures. Agriculture and allied activities were resilient in 2022-23, with gross value added (GVA) registering a growth of 3.3 per cent. In the industrial sector, manufacturing activity withstood global spillovers, while electricity generation exhibited robust growth, and mining recorded steady activity. Sustained momentum was seen in construction activity, while infrastructure and capital goods production benefittedfrom the government-led investment in infrastructure. India is well placed to capture shift in trade flows (estimated at ~$4.6 Tn) resulting from global supply chain disruptions backed by attractive government incentives.

Inflation reached a peak of 7.8 per cent in April 2022, which was moderated by supply management measures by the government and successive hikes in the policy repo rate by the Reserve Bank.

Overall, headline inflation increased to 6.7 per cent in 2022-23 from 5.5 per cent in 2021-22.

The revised GDP growth for 2023-24 projected at 6.5% reflects the impact of the developmental measures taken by the Government.

Indian Banks are shielded from the volatility witnessed by International financialmarkets due to a diversified deposit & asset base, better risk in India, however, gained marginally, despite portfolio outflows and forex market pressures, reflecting Indias growth resilience and rising investment in the market by resident entities.

Indias merchandise exports touched US$ 450.4 billion during 2022- 23, which is 6.7 per cent above the previous years record level. India witnessed a transition from net importer to exporter in areas such as mobile phones and toys and registered a 10-fold increase in exports of defense goods in a short span, leveraging on policies such as ‘Make in India and ‘AatmaNirbhar Bharat.

Domestic economic activity exhibited resilience in the second half of the year under review, amidst accentuating global headwinds. Investment activity was robust while private consumption growth moderated. On the supply side, services sector was the main driver, with elevated input cost pressures dragging down the manufacturing sector.

Going ahead, the economic activity would be supported by improving rural demand, the Governments thrust on infrastructure spending, revival in corporate investment, healthy bank credit, and moderating commodity prices.

BANKING SECTOR

During the year, the banking system continued the efforts to augment capital and improve asset quality. Fresh lending gained momentum during 2022-23, resulting in double-digit credit growth encompassing all major sectors. The asset quality of scheduled commercial banks (SCBs) continued to improve, with gross non-performing assets (GNPA) ratio and net non-performing assets (NNPA) ratio declining and the quarterly slippage ratio cooling off. The provisioning coverage ratio (PCR) also steadily increased. Net interest margin (NIM) witnessed an improvement, reflecting the higher degree of transmission of monetary policy to lending rates than to deposit rates in the rising interest rate cycle. Consequently, profit after tax (PAT) registered strong growth. Return on equity (RoE) and return on assets (RoA) for SCBs improved further during the year.

Transactions routed through digital modes recorded a marked expansion in 2022-23 over and above the strong growth witnessed a year ago. In 2022-23, total digital payments recorded growth of 57.8 per cent and 19.2 per cent in volume and value terms, respectively, on top of growth of 63.8 per cent and 23.1 per cent, respectively, in the previous year. India outpaced other nations to emerge as the largest player in real-time transactions at the global level, with a 46 per cent share in 2022. The strong penetration and growth in Unified Payments Interface (UPI) were buoyed by rapid merchant onboarding, growing digital awareness and policy thrust on continuous enhancements in the scope and reach of payment systems. India has also focused on increasing its banking sector reach, like the PMJDY and Post payment banks. Schemes like these coupled with major banking sector reforms like digital payments, neo-banking, a rise of

Indian NBFCs and fintech, significantly enhanced Indias financial inclusion and helped fuel the credit cycle in the country.

PERFORMANCE HIGHLIGHTS OF THE BANK

• The Banks deposit has increased to 47,766 crores (PY same period 44,933 crores)

• The advance level of the Bank has increased to 37,582 crores with a growth rate of 11.36 %

• The Operating Profit is at 1,573 crores as on 31.03.2023 as against 1,516 crores for year ended 31.03.2022.

• The Net Profit is at 1029 crores as on 31.03.2023 as against 822 crores) for the year ended 31.03.2022 registering the growth rate of 25.18%

• The Net Interest Income (NII) has increased to 2,094 as on 31.03.2023 ( 1,815 crores as on 31.03.2022) registering a growth rate of 15.37%.

• The NIM has moved up from 4.10% in FY 2022 to 4.46% in FY 2023

• Return on Asset at 1.97 % & Return on Equity at 16.78 % (PY 1.66 % and 16.58 % respectively)

• The Banks Net worth increased to 6,928 crores (PY 5,336 crores) with an absolute rise of 1,592 crores registering a growth rate of 29.84 %

• Our CRAR stood at 26.26% for the FY 2023

• The Gross NPA as a percentage to total advances stood at 1.39 % and net NPA stands at 0.62 %. (PY 1.69% and 0.95 % respectively)

• Provision Coverage Ratio of the Bank increased to 90.90 % (PY 87.92 %)

B. OPPORTUNITIES AND THREATS.

STRENGTHS

• More than 100 years of presence in Banking Industry with unblemished record

• Strong legacy, loyal customer base and focus on improving servicing framework

• Uninterrupted Dividend payment history

• Very strong capital base comprising mainly of Tier I Capital

• High Brand recall in Tamilnadu

• Reputation as a Bank where customer service is given prime importance

• A large bouquet of products both in liabilities and assets.

• A highly motivated and young staff strength with average age of 35 years

• Strong asset quality, underwriting practices and risk management policies and procedures

• Consistent financial performance

WEAKNESS

• Branch network predominantly in Tamilnadu

• Minimal presence in many metro / urban centers with a single Branch presence.

• Relatively low digital presence

• A comparatively small customer base

OPPORTUNITIES

• With Indian economy opening up, enormous opportunities have been created to lend to various sectors

• New avenues to expand in Digital space by introducing lending in internet & mobile platforms

• Opening braches at various places outside Tamilnadu to increase its footprint & garner business

• Possibility to engage with the youth of the country and to partner with them in their aspirational activities.

• Lending to units reducing pollution or increasing clean environment

THREATS

• NBFCs & small payment Banks competing for deposits and crowding the market place.

• Interest rate wars among Banks chasing a limited number of risk free borrowers.

• Big private sector Banks entering the rural and semi urban areas

C. SEGMENT–WISE OR PRODUCT-WISE PERFORMANCE.

			Y-O-Y
			GROWTH
PARTICULARS	MARCH 22	MARCH 23	(MAR23 OVER MAR22)
Gross Advances	33,748	37,582	11.36%
Of which
Retail Sector	6,758	7,866	16.39%
Agriculture Sector	10,023	11,575	15.48%
MSME Sector	12,615	13,319	5.58%
Total of RAM	29,396	32,760	11.44%
RAM % to Gross Advances	87%	87%
Corporate & Others	4,352	4,822	10.80%
CD Ratio	75%	79%

Our Retail & Agriculture sector have grown at 16.39% and 15.48% respectively on a Y-o-Y basis.

We achieved the highest ever Net Profit, Operating Profit & Net Interest Income in the history of the Bank.

D. OUTLOOK

Enhanced spending on infrastructure, speedy implementation of projects and continuation of reforms are expected to provide further impetus to growth in the banking sector. All these factors suggest that Indias banking sector is poised for robust growth as rapidly growing businesses will turn to banks for their credit needs. The advancement in technology has brought mobile and internet banking services to the fore. The banking sector is laying greater emphasis on providing improved services to their clients and upgrading their technology infrastructure to enhance customers overall experience as well as give banks a competitive edge.

The future state of the Indian Banking lies in the modernization of the core banking system. Introduction of new, better and agile technologies is carving out new paths of growth and optimization. Banking will be more lifestyle oriented and banks will look to extend their core systems to kick-start growth by launching new products, build digital experiences, and augment operational efficiency by leveraging the likes of AI, machine learning and cloud technologies. These would include themes like digital on boarding and quick loan disbursals.

ArtificialIntelligence, Machine learning and Deep-learning will be employed as decision - making tools to judge the behavioral aspects of customers. Block chain technology will enable revisiting of processes, procedures and internal controls, to create an effective and robust sustainable structure. Adoption of block chain will be gradual and steady, as waves of technological and institutional changes gain momentum.

Gradual transition to "Transaction based lending" based on "cashflows"of the borrower as against "Asset Based Lending" for the large borrowers will emerge with lesser reliance on "Cash Credit System" as a credit delivery mechanism.

Green and Sustainable Banking with an endeavor to allocate resources towards avenues that lead to Environment, Social, and Governance objectives, in line with international standards. The following are the strategies Bank will adopt to grow its business

• In order to attain the vision of making your Bank the ‘most preferred digital Bank, a five-year strategy plan was laid out during the year.

• The Bank will embark into a Technology, Digital and HR transformation besides Business Process Re-engineering (BPR).

• With a clear vision which strives for deeper and more profitablecustomer relationships and operational excellence to streamline the organization, your Bank is all set to move towards an ever-improving P&L and Balance Sheet

• The insurance partners have been extending their support by deploying man power at the Regions/branches for training the staff members to cross-sell as well as source business along with the staff members.

• A global management consulting firm has been engaged for Business process re-engineering in MSME sector.

• Exploring to have tie-up with fintech companies for increasing the non-interest income.

• Introducing the end-to-end loan digitization.

• Use of Data Mining, Artificial Intelligence (AI), Machine learning and other evolving technological tools will help in not only retaining the customers but also to widen the client base.

• On the credit front, a lot is expected to be done for improving the Credit Appraisal Standards, Monitoring Mechanism and Risk Management Strategies.

• The credit delivery system may undergo a change with transition towards Transaction based lending, based primarily on "Cash flows, as against "collateral based landing".

• Green and sustainable banking shall be an integral part of future banking scenario with an aim to allocate resources towards avenues that lead to environmental, social and governance objectives, in line with the emerging opportunities.

E. RISKS AND CONCERNS.

The Risk Management philosophy of your Bank is to accept risk as an essential aspect of business and take necessary steps to manage and mitigate the risk. Your Bank seeks to build business which expands but always within the overview of the risk management principles. As with all banks in the banking system, your Bank is exposed to various risks that are inherent to any banking business. The major risks are credit risk, market risk including interest rate risk and liquidity risk, Operational risk, Reputational and strategic risks. Your Bank has put in place a very responsive risk management framework. The Bank has robust risk management policies, well laid out procedures, processes and methodologies to manage the risks envisaged.

The overall responsibility for establishing a strong risk management framework lies with the Board of Directors. The Risk Management Committee (RMC) of the Board oversees the implementation of various measures for efficient risk management with the support of the Executive Level

Committees.

Risk Management Department is headed by the Chief Risk Officer, who is responsible for the risk management functions of your Bank. An independent risk governance structure has been put in place, duly ensuring independence of risk measurement, monitoring and control functions. The bank has a well-articulated risk appetite statement and activities of the bank are structured to fall in line with the risk appetite, which is defined.

Your Bank has an internal rating mechanism, which forms the basis for risk linked pricing framework. The bank also has a scoring structure for the retail loans. The loan policy of the Bank ensures that the underwriting standards are maintained, on line and off line monitoring methods are devised to strengthen supervision of credit and whenever weaknesses are perceived, risk mitigation measures are implemented. The Bank has also EWS system, which is an automated environment for early detection of frauds.

The Bank has exposures in RAM segment i.e. Retail, Agriculture and MSME. The bank has been traditionally strong in these areas and proposes to build on the expertise it has gained over the years for further growth in these segments. Retail has a specific focus of home loans and the

Bank intends to increase the exposure in this portfolio. Your Bank is active in lending for two-wheelers and four wheelers and will continue to expand in this segment. The risk management structure for identifying, measuring, monitoring, controlling and mitigating the risks for these portfolios are well entrenched. With regard to industry exposure, in addition to good underwriting skills strengthened by established appraisal norms, there are also mechanism of capping various exposures on the basis of the borrower group, industry, credit rating grades and geography, amongst others. Further major sectors are also monitored by having caps in place. Concentration risk is tracked by putting proper limits.

Credit risk management is practiced in your Bank, through its various policies, risk assessing tools and risk mitigating measures, which forms the base for good credit growth coupled with asset quality.

Your Bank has put in place proper framework for market risk management. The Bank has a conservative approach to investment and mainly invests in Government securities. In case of investing in bonds of corporate entities, the Bank ensures that the external rating of the entities are investment grade only.

The forex activities are mainly trade finance oriented, purchasing, discounting and negotiating bills drawn on various currencies on account of our customers. The Bank has put in limits with regard to its foreign currency position like Net Overnight Open position, Currency wise aggregate gap limits etc., so that the fluctuations of foreign currencies does not lead to any substantial loss to the Bank. Counterparty limits for exposures with banks are also in place to ensure that the Bank not enter into any high exposures with banks. The Bank also understands that the Operational risk is one the major risks faced by banks and there is a need to have bank wide structure in place to identify, monitor and mitigate this risk. The Bank conducts Risk and control Self-assessment (RCSA) on its products and processes to understand the control deficiencies, if any, and take steps to address the same. Further, the Bank is laying great emphasis on training and educating its staff on all banking matters especially in various types of products and processes so that errors can be minimized. System based checks are also in place to ensure that the mistakes can be prevented. Your bank is taking all the steps necessary to ensure that the impact of operational risk is reduced

F. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY.

INSPECTION AND AUDIT

Inspection and Audit independently evaluates the adequacy, completeness, operational effectiveness and efficiency of all internal controls, risk management/governance systems and processes of the Bank. The Audit Committee of the Board provides direction and reviews the adequacy of internal audit function, including its reporting structure, staffing, coverage and frequency of audits. The Head of Inspection Department is designated as the "Internal Auditor" of the Bank and reports directly to Managing Director & CEO. An executive level committee named the "Audit Committee of Executives" headed by the Managing Director & CEO oversees the audit and inspection functions and reviews the audit procedures and methodologies, effectiveness of audit systems, progress in completion of audits, risk rating of branches, and significant findings. The Risk Based Internal Audit Policy, Credit Audit Policy, Management Audit Policy,

Concurrent Audit Policy and Information System Audit Policy which serve as the basic guidance documents for internal Audit function, were subjected to annual review during the year. The review covered appropriate modifications and refinements changes in internal rules and guidelines, directions of the Audit Committee of the Board and the

Board of Directors. The review and modifications ensured that the audit systems and procedures are contemporary and continue to be an effective tool for monitoring control and compliance in the Bank. Inspection & Audit is responsible for self-assessment of the Banks internal financial controls by testing and validating the effectiveness of controls on an ongoing basis. The major audits undertaken by the Bank during the financial year are

RISK BASED INTERNAL AUDIT

Our Bank has leveraged on Risk Based Internal Audit (RBIA) as a tool to assess the risks in its processes, operations and effectiveness of related controls. Risk Based Internal Audit conducted at branches focus on evaluating the branches based on the level of inherent business risks and control risks. 536 Risk Based Internal Audits were conducted during the financial year 2022-23.

INFORMATION SYSTEM AUDIT

Information System Audit collects and evaluates the evidence to determine whether the information system safeguards assets, maintains data integrity and availability, achieves organizational goals effectively and consumes resources efficiently. It focuses on the risks that are relevant to information assets and assesses the adequacy of controls implemented for mitigating the risks. All critical IT infrastructures in the Bank are subjected to Information System Audit by information systems professionals from reputed CERT-IN empaneled external audit firms and Certified Information System Auditors (CISA) of the Bank. Critical Information Systems are subjected to Vulnerability Assessment & Penetration Testing (VAPT) every quarter. In addition to this, Information System Audit covering physical security of IT systems and business continuity procedures is conducted at branches/offices. During the financial year 2022-23, Information System Audit was conducted in 557 branches/offices.

MANAGEMENT AUDIT

Management Audit in the Bank essentially focuses on identifying the adequacy and effectiveness of processes adopted for decision making in Regional Offices, various Head OfficeDepartments of the Bank i.e. International Banking Division, Integrated Treasury Department, Information Technology Department , Inspection Department, including IS Audit Cell, Human Resources Development Department, Vigilance Department, Accounts Department, MIS Department, Credit Recovery & Follow-up Department, Credit Department, Credit Audit and Monitoring Department, KYC/AML Cell, Risk Management Department, Secretarial Section, Compliance Department, Planning Development and Resource Mobilization Department, Operations & Services

Department, Customer Service Cell, Legal Department, Staff Training College, Bancassurance cell, DPS cell, Establishment Department, Service Branch, RTGS/WUMT cell, Central Processing Centre, Discipline & Fraud Monitoring Cell. The feedback from management audit is relied upon by the auditee units to improve the processes, procedures and systems in place in such offices. During the financial year 2022-23, Management Audit was conducted in 18 offices.

OFFSITE AUDIT

Offsite audit is a forward looking diagnostic tool to identify gaps in the systems and procedures of the Bank. The revenue audit in the Bank is undertaken through Offsite Audit. Your Bank leverages Audit Command Language (ACL) tool for generating and analyzing exceptions while conducting offsite audits.

CONCURRENT AUDIT

Our Bank is increasingly relying on ‘Concurrent Audit as an early warning system to ensure near real-time detection of irregularities and lapses and is also used as a tool to prevent frauds. Your Bank has implemented the revised Concurrent Audit framework, duly approved by the Audit Committee of the Board, as per RBI circular dated September 18, 2019, with effect from April 1, 2020. During the year under review, Concurrent Audit was in place in 200 branches and

20 offices, covering 68.23% of total advances and 72.11% of total deposits of our Bank. The offices covered under the Concurrent Audit include all the Regional offices, Central Processing Centre,

Chennai Service branch, International Banking Division, Treasury Department, DPS Cell, ATM Cell, Accounts Department, Information Technology Department, Establishment Department, Planning Development & Resources Mobilisation Department, and Branches where RBIA risk rating is assessed as "High". Concurrent Audit is also conducted in all the currency chests as required by the Reserve Bank of India. 210 External Auditors / Audit Firms were engaged for concurrent audit assignments during the period.

CREDIT AUDIT

In our Bank, verification of account operations, end-use, stock, documents, etc. of big borrowal accounts are carried out periodically at post-sanction level and referred as Credit Audit. During the financial year 2022-23, 252 Credit Audits were conducted.

OUTSOURCE AUDIT

A Comprehensive Risk Based Due Diligence of Partners/Service providers is conducted to ensure that they are financially stable, comply with information security controls in place to safeguard the interests of all the stakeholders of the

Bank. During the financial year 2022-23, 20 outsourced agencies were audited.

The Inspection Department is manned by appropriately qualified personnel and has a staff strength of 36 officers (as on March 31, 2023) with expertise and exposure in all activities of the Bank, such as branch operations, credit sanction, credit monitoring, clearing operations, information technology, risk management and treasury operations.

(G) KEY FINANCIAL AND OPERATING RATIOS:

OPERATING PERFORMANCE:

( in Crore)

PARTICULARS	31.03.2023	31.03.2022
Total income	4,710.15	4,646.12
Total Expenditure	3,137.31	3,129.67
Net Interest income	2,094.12	1,815.23
Non-Interest income	629.11	812.26
Operating expenses	1,150.39	1,111.04
Operating Profit	1,572.84	1,516.45
Net profit	1,029.26	821.91

The interest income registered a growth of 6.45% (Y-o-Y).

The Net profit grew by 25.23% during the year.

KEY FINANCIAL RATIOS:

( in Crore)

PARTICULARS	31.03.2023	31.03.2022
Return on Assets	1.97	1.66
Return on Equity	16.78	16.58
Net Interest Margin	4.46	4.10
Cost to Income Ratio	42.24	42.29
Non-interest to Total Income	13.36	17.48
Earnings per share ( )	68.06	57.67
Book value per share ( )	437.53	374.41
Shareholders fund ( Crore)	6,928.35	5,335.71
Total Assets ( Crore)	57,895.37	52,858.49

The Return on Net worth (ROE) stood at 16.78% as on 31.3.2023 with a rise of 20 bps over the previous year. The shareholders fund increased by 1,592.64 crore i.e. 29.85% over the previous year. The Bank issued 1.58 crores equity shares of 10 each at a premium of 500 per share and the banks shares were listed in BSE and NSE on 15.09.2022. The Book value per share registered a growth of 16.86% during the year.

H. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED.

JOB ANALYSIS AND POSITION DESCRIPTION

The HRD Department conducts a comprehensive job analysis to identify the key competencies and qualifications required for each position. Based on this analysis, they create detailed position descriptions outlining job responsibilities, required skills, and desired experience.

TRAINING NEEDS ASSESSMENT

The HRD Department conducts regular training needs assessments to identify skill gaps and development areas among employees. This involves collecting feedback from managers, conducting performance evaluations, and analyzing organizational objectives to determine the training priorities.

DESIGNING AND IMPLEMENTING TRAINING PROGRAMS

Based on the training needs assessment, the HRD Department designs and implements various training programs. These programs may include technical skills training, leadership development, customer service enhancement, and compliance training. They utilize internal trainers or collaborate with external training agencies to deliver high-quality programs.

EMPLOYEE DEVELOPMENT PLANS

The HRD Department collaborates closely with managers and staff members to establish personalized development plans that are in line with the organizations objectives and the individuals career ambitions. These plans delineate targeted developmental initiatives, including mentorship, coaching, job rotations, and online courses, all designed to augment employees skills and competencies.

EMPLOYEE AND INDUSTRIAL RELATIONS

During the past year, the Industrial Relations climate remained favourable, with due importance given to various representative bodies in order to foster harmonious relations.

CAPABILITY BUILDING

To facilitate individual growth and to contribute to the overall progress of the organization, your Banks Staff Training College is dedicated to creating a continuous learning ecosystem for employees. A diverse range of focused training and learning solutions is offered, including: a. Standardised Test for English Proficiency

Spoken Hindi training for Mumbai, Ahmedabad & Hyderabad regional staff Members as a pilot basis. b. Self-learning TMB eSMART Certifications, c. Support for capacity-building certifications, d. Talent Pool System Grooming of Talented employees in an efficient way.

These initiatives provide employees with multiple avenues to continuously enhance their skills, acquire new competencies, and confidently adapt to the evolving demands and challenges of the times. A Learning Need Analysis survey is conducted to identify gaps in knowledge, skills, and attitudes. A Governing Council, led by the MD & CEO and GM (HRDD) and comprising General Manager (PD& RM), General Manager(Recovery), General Manager(Credit) & General Manager (I.T), and faculty, convenes twice a year to prioritize training areas for the Bank and review the progress and effectiveness of training interventions. A dedicated feedback mechanism is in place to facilitate this evaluation process.

DIGITAL TRAINING PROGRAMS

a. Programmes like Digital Banking- An Era of Digital Revolution training b. Programmes in Training on IT Security by C-DAC c. Programme in IT & Cyber Security for Senior Management d. Online certification programme in IT and Cyber Security for Senior Management e. Digital Transformation, Emerging Technologies and use of Data Analytics in Banking & Finance

EQUITY AND DIVERSITY

i. Executive Development Program for Women Officers of the Banks/FIs, in addition to multiple internal women leadership training. ii. CERT-Ins Cyber security awareness and training Session "Cyber Hygiene for Women

Officials"

PROFESSIONAL DEVELOPMENT NETWORKS

Tie-ups/ arrangements with ‘STEP Hindu for Communication upskilling, confidencebuilding, and managerial effectiveness

ONLINE TRAINING PROGRAMS

i. Online Training Programme on Agriculture Financing and Farm Credit Management ii. Half-Day Online Workshop on Agri Value Chain Financing – Concepts & Opportunities iii. National Strategy for Financial Education iv. Webinar on Cyber Security: Past, Present & Future

EMERGING LEADERS INITIATIVE

i. ProgrammeonLeadershipandDevelopmentofSoftSkillsforBranchManagers&Leadership-IIBF ii. Leadership Development Programme for Banks –IIBF iii. Psychometric assessment conducted by ASCI, Hyderabad for Executives iv. Managing Stress for Effective Performance

LEARNING ACCELERATOR E-SMART CAPACITY BUILDING PROGRAMME IN TMB ESMART

In this programme, all staff members are encouraged to attend training in TMB eSMART followed by an online exam. The online exams are conducted at frequent intervals. E-Certificate is issued to staff members who successfully complete the exam by scoring the necessary pass marks. Re-examinations is also being conducted for staff members who fail in the examination by giving a second chance. The Certified staff members are also given due weightage in Promotion and Transfer. TMB eSMART Certificate is given due

Promotion Appraisal.

EVALUATION AND FEEDBACK

The HRD Department evaluates the effectiveness of training programs and development initiatives through feedback surveys, post-training assessments, and performance evaluations. This feedback loop helps in continuously improving the training interventions and ensures that employees receive valuable learning experiences.

COMMUNICATION AND FEEDBACK CHANNELS

The HRD Department establishes effective communication channels to ensure transparent and open communication between employees and management. This includes regular team meetings, suggestion boxes, online platforms, and anonymous feedback mechanisms, enabling employees to express their ideas, concerns, and suggestions.

EMPLOYEE SURVEYS AND FEEDBACK MECHANISMS

To gauge employee satisfaction and engagement levels, the HRD Department conducts regular surveys and feedback mechanisms. These tools provide valuable insights into employee perceptions, job satisfaction, work-life balance, and overall organizational climate. The feedback received helps in identifying areas of improvement and implementing targeted initiatives.

WORK-LIFE BALANCE INITIATIVES

Recognizing the importance of work-life balance, the HRD Department implements various initiatives to support employees in achieving harmony in their personal and professional lives.

These initiatives may include flexible work, wellness programs, employee assistance programs, and stress management workshops.

TEAM BUILDING ACTIVITIES

The HRD Department organizes team-building activities and events to foster a sense of camaraderie, collaboration, and trust among employees. These activities include sports events, social gatherings, and cross-functional projects, enhancing teamwork and employee relationships.

EMPLOYEE WELLNESS PROGRAMS

To promote employee well-being, the HRD Department implements wellness programs focused on physical, mental, and emotional health. These programs include Yoga sessions, health screenings, mindfulness sessions, and access to counselling services. By prioritizing employee wellness, the HRD Department contributes to a healthier and more productive workforce.

EMPLOYEE SATISFACTION AND RETENTION

Through its various initiatives, the HRD Department plays a significant satisfaction and retention. By ensuring fair recruitment processes, providing training and development opportunities, and implementing effective performance management systems, the HRD Department creates a positive work environment that fosters employee loyalty and reduces turnover rates. The attrition rate in the bank is at 3.50%.