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Tamil Nadu Grama Bank Achieves Impressive Zero NPA and Strong Advances Despite Staff Shortages
Tamil Nadu Grama Bank achieved zero NPA, strong advances, and impressive financial growth in FY 2023-24. However, staff shortages have resulted in adverse work pressure and challenging conditions for employees.

Author: Saurav Kumar
Published: May 22, 2024
Tamil Nadu Grama Bank (TNGB) has achieved outstanding results for the fiscal year 2023-24. The bank’s audited financial data reveal a remarkably Zero Net Non-Performing Asset (NPA) rate and a significant increase in advances, reflecting an impressive turnaround.
The audited data for FY 2023-24 show that TNGB has not only reduced its net NPA to zero but has also seen substantial growth in several key metrics, including total business, deposits, operating profit, net profit, and advances. Despite facing an acute shortage of staff and infrastructural challenges, the bank has maintained its upward trajectory, demonstrating its resilience in serving the rural population with sustained success.
Zero NPA and Strong Advances
One of the standout achievements in TNGB’s FY24 performance is the Zero NPA, underscoring the bank’s robust risk management capabilities. Anto Gaulbert, President of the TNGB Officers Association, told Kanal, “TNGB provides both secured and diversified forms of lending, and their recovery has been absolute, resulting in no NPA.”
Image: Annual Financial Audited Data of TNGB in FY 24
In terms of gross advances, the bank achieved a remarkable increase of 22.71%, amounting to Rs. 25,130 crore. Deposits saw a marginal rise of 4%, reaching Rs. 20,783 crore, while total business stood at Rs. 45,913 crore, witnessing a growth of 13.06%.
In terms of profitability, TNGB registered a 12.01% increase in operating profit, amounting to Rs. 775.71 crore, and a net profit of Rs. 446.73 crore, reflecting a 6.80% rise.
Tamil Nadu Grama Bank was formed on April 1, 2019, through the amalgamation of the erstwhile Pallavan Grama Bank and Pandyan Grama Bank. The bank is sponsored by Indian Bank and operates 663 branches across 37 districts of Tamil Nadu, excluding Chennai, with its headquarters in Salem.
In terms of profit, TNGB registered 12.01% of operating profit worth Rs. 775.71 while a net profit of Rs. 446.73 with 6.80%.
Impressive PCR and CD Ratio
Tamil Nadu Grama Bank (TNGB) showcased an impressive Provision Conversion Ratio (PCR) of 100% and a Cash Deposit Ratio (CDR) of 120.92%. This strong combination highlights the bank's robust financial health, effective risk management, and efficient utilisation of resources.
High Per Employee Business Despite Work Pressure
Despite facing significant staff shortages, TNGB has achieved an impressive per employee business of Rs. 16.32 crore. Ironically, this growth story is marred by the challenging working conditions for its employees. The bank is grappling with a severe staff shortage, which contradicts its otherwise stellar performance.
According to Anto Gaulbert, most branches are operating with a 1:1 or 1:2 officer-to-clerk ratio, meaning branches often function with just one officer and one clerk or, at most, one officer and two clerks. “Employees in TNGB are working under immense pressure, often sitting for late working hours, which adversely affects their work-life balance. Despite the institutionalised exploitation and challenges, the employees' hard work is reflected in the annual financial figures,” Anto added.
Gramin banks across India have urgently highlighted the need for staff recruitment in line with the S.K. Mitra Committee recommendations. The All India Rural Regional Bank Employees’ Association (AIRRBEA) has long urged for the filling of 30,000 vacancies across 43 RRBs.
Overall, Tamil Nadu Grama Bank has demonstrated impressive financial performance, effectively serving the rural masses in Tamil Nadu. However, the unresolved issues of staff shortages and work pressure remain significant challenges.