Tamilnad Mercantile Bank posts highest-ever quarterly net profit of Rs 412 crore in Q1 FY27
Mumbai, July 27
Tamilnad Mercantile Bank has reported its highest-ever quarterly net profit of Rs 412 crore for the first quarter ending June 30, registering a robust 35 per cent year-on-year growth.
The bank's stellar performance was anchored by a 32 per cent Year-on-Year surge in net interest income (NII) to Rs 765 crore, while operating profit expanded 48 per cent Y-O-Yto reach Rs 611 crore.
Total business crossed Rs 1.21 lakh crore, up 23 per cent y-o-y, significantly outperforming broader industry growth trends. Advances grew 27 per cent yearly to Rs 57,306 crore, led by retail, agriculture, and MSME (RAM) loans, which rose 28.5 per cent y-o-y to Rs 54,083 crore--constituting 94.4 per cent of the bank's total loan book. Total deposits increased 20 per cent y-o-y to Rs 64,409 crore.
Highlighting the bank's operational momentum, Salee S Nair, Managing Director and CEO of Tamilnad Mercantile Bank, said, "This has been a very interesting quarter for us, demonstrating the acceleration of efforts put in place over the last several quarters. Delivering 23% business growth compared to our historical CAGR is the highest in 14 years and over 7 percentage points above industry levels. It is also the highest-ever net profit in the bank's history, crossing the ₹400 crore milestone for the first time while keeping credit costs well under control."
Asset quality remained best-in-class, with gross NPA declining to 0.69 per cent and net NPA to 0.17 per cent. Demonstrating prudent risk management, TMB fully provided 100 per cent against its stressed non-fund-based (NFB) exposures ahead of the upcoming Expected Credit Loss (ECL) regime.
Return on Assets (ROA) improved to 2.14 per cent, Return on Equity (ROE) expanded to 15.93 per cent, and Capital Adequacy (CRAR) remained robust at 32.33 per cent.
Elaborating on digital adoption and infrastructure initiatives, Nair said, "Our IT investments are resulting in significant process automation. While overall business grew 23%, manual branch transactions dropped noticeably, with 97.4% of total transactions now occurring through digital channels. We are heavily investing in our digital hubs, AI-driven automation, and cyber security to drive productivity and protect customer interests."
TMB's gold loan portfolio reached Rs 27,404 crore, while FCNR(B) deposits grew to Rs 825 crore. Management re-affirmed its strategy to deepen its regional footprint across South India, Maharashtra, and Gujarat while maintaining strong capital headroom.
— ANI
Reader Comments
Great numbers but I hope the bank passes on some benefits to depositors. Fixed deposit rates have been stagnant for too long. Profit is good but customer satisfaction matters too.
Honestly, this is brilliant. From a small regional bank to posting such numbers, TMB has come a long way. Gold loan portfolio of ₹27,404 crore is huge! Shows how much trust people have in them for gold loans.
2.14% ROA is excellent for any bank. But credit costs "well under control" - hope that remains the case when macro headwinds come. Still, kudos to Salee S Nair for such a strong quarter. 🎯
Net NPA at 0.17% - that's almost like a dream for Indian banking. I've been a TMB customer for 15 years and their service has improved a lot. Digital push is good but please don't forget rural customers who still need branch service. 🙏
Impressive growth but valuation is already expensive. The market will expect this consistency. One quarter doesn't make a trend. Need to see if they can sustain this momentum in coming quarters. Still, a very nice performance indeed.
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