Tamilnad Mercantile Bank Q3 net almost doubles to Rs 181 cr on robust NII

The lender's NII was up 8.46% to Rs 428.73 cr from Rs 338.72 cr, while operating profit rose 36.72% to Rs 349.82 cr

Tamilnad Mercantile Bank (TMB) has reported a 96 per cent growth profit of Rs 180.81 crore during the quarter ended December 2020 from Rs 92.42 crore, a year ago.

K V Rama Moorthy, managing director, CEO, TMB attributed the growth to high net interest income (NII),  lower provision and increase in operating profit.

The lender's NII was up 8.46 per cent to Rs 428.73 crore from Rs 338.72 crore, while operating profit rose by 36.72 per cent to Rs 349.82 crore from Rs 255.87 crore, a year ago.

The bank's net NPA dropped to Rs 270.36 crore during the nine months ended December 31, 2020 from Rs 564.18 crore. In terms of percentage it dropped to 0.92 per cent from 2.13 per cent.

Gross NPA dropped to Rs 976.88 crore (3.24 per cent) from Rs 1,410.98 crore (5.16 per cent).

Provision coverage ratio stood at 89.31 per cent.

TMB hopes to close the fiscal with a total business of Rs 72,500 crore, with deposits crossig Rs 40,500 crore and advances, beyond Rs 32,000 crore.

Its total business at the end of December 2020 stood at Rs 68,101.12 crore.

TMB is targeting a net profit of Rs 480 crore.