Banks should broaden lending strategy and work towards financial inclusion: VP CP Radhakrishnan

Banks need to have a holistic lending strategy providing credit for MSMEs, corporates, entrepreneurs and personal loans without narrowing their focus on any one particular vertical, the Vice President of India, CP Radhakrishnan, said here on Wednesday. He called upon banks to strengthen financial inclusion, support entrepreneurs, farmers and women-led enterprises, and contribute to the vision of Viksit Bharat.

The Vice President was speaking at an event marking the 105th foundation day of Tamilnad Mercantile Bank (TMB), where he also emphasised the trust that banks like TMB have been able to cultivate given their rich legacy.

The Thoothukudi-headquartered bank was founded in 1921 by business leaders from the influential mercantile Nadar community to support local trade and independent ventures. Nearly 100 years later, TMB has evolved from a regional player in southern Tamil Nadu to one of the fastest growing private sector banks in India with over 600 branches across 17 States.

During the event, the Vice President also inaugurated four new branches and regional offices of TMB across Thoothukudi, Chennai and Thiruvananthapuram.

The event also saw the presence of Rajendra Vishwanath Arlekar, Governor of Tamil Nadu and senior leadership from TMB.

Arlekar said that every bank’s biggest deposit is not the monetary value but the trust that it holds among its customers . “It is not just the management of financial services, but the management of people’s trust. The priority must be to manage the public trust in the best way.”

Salee S Nair, Managing Director and CEO highlighted the bank’s efforts to transform itself over recent years, and said that the measures had led to growth accelerating from a CAGR of 9 per cent over the past 10 years to more than 20 per cent this year. “We have also been able to grow 8 per cent faster than the industry and recorded our highest-ever net profit,” he said.

TMB reported its highest ever quarterly net profit at ₹451 crore for the quarter ended September 2026 (Q2FY27) , a growth of 42 per cent year-on-year. Total business grew 27.25 per cent, highest year-on-year growth since listing of the bank.

(The writer was in Thoothukudi at the invitation of Tamilnad Mercantile Bank)