Tamilnad Mercantile Bank net profit up 11% in Q4 of FY23, expenditure rises

Board recommends final dividend of Rs 5 per equity share, in addition to interim of Rs 5 per share paid before

Tamilnad Mercantile Bank (TMB) on Monday posted an 11 per cent increase in net profit at Rs 253 crore for the fourth quarter of FY23, compared to Rs 227 crore in the same period in FY22.

The bank’s total income was up by 4 per cent: from Rs 1,201 crore in March 2021-22 to Rs 1,254 crore in the fourth quarter of FY23. TMB’s net interest income was up 8 per cent year-on-year in the fourth quarter of FY23 at Rs 527 crore, up from Rs 488 crore last year. The bank’s total expenditure was up by 10 per cent from Rs 774 crore by the end of March 2022 to Rs 849.6 crore during the same period in FY23. Operating profit during the period under review dipped by 5 per cent to Rs 404.41 crore, compared to Rs 426.39 crore in the year-ago period.

The lender's asset quality profile improved with gross non-performing assets (GNPAs) at 1.39 per cent in March 2023, compared with 1.69 per cent in the year-ago period. Net NPAs dipped to 0.62 per cent from 0.95 per cent. The provision coverage ratio improved to 90.90 per cent for the quarter under review from 87.92 per cent a year ago.

During the financial year 2022-23, the bank’s net profit increased by 25 per cent from Rs 821.92 crore to Rs 1,029.26 crore. The bank’s total income saw a marginal increase of 1.38 per cent o Rs 4,710 crore during the financial year.

The bank’s board recommended on Monday a final dividend of Rs 5 per equity share, in addition to an interim dividend of Rs 5 per share paid on March 6, 2023, for the year ended March 31, 2023.