Tamilnad Mercantile Bank Q3 results: Net profit rises 6% to Rs 300 crore

Thoothukudi-headquartered Tamilnad Mercantile Bank (TMB) has posted a 6 per cent rise in net profit during the third quarter of the financial year 2024-25 (Q3 FY25) to Rs 300.24 crore, up from Rs 284.23 crore in the October-December quarter of the previous financial year, driven by continued growth in its core lending and deposit businesses.

 

"We believe that our strategic initiatives, coupled with our focus on responsible lending and cautious risk management practices, will pave the way for sustainable and profitable growth in the years to come," said Salee S Nair, managing director and chief executive officer, TMB.

 

The net interest income stood at Rs 570 crore for Q3 FY25, as against Rs 537 crore in Q3 FY24, registering a growth rate of 6 per cent.

 

Total income grew 10 per cent to Rs 1,519.94 crore during the quarter under review, from Rs 1,387.13 crore in the October-December period last fiscal.

 

The bank’s deposits increased to Rs 50,392 crore, from Rs 46,799 crore in the same period last fiscal.

 

The advances level of the bank also rose to Rs 43,650 crore, with a growth rate of 13.71 per cent on a year-on-year (YoY) basis.

 

During the quarter, the bank’s non-interest income improved to Rs 189 crore, from Rs 158 crore, an increase of 20 per cent.

 

Operating profit also improved to Rs 408 crore, from Rs 370 crore, registering a growth of 10 per cent.

 

The net interest margin increased to 4.25 per cent, from 4.1 per cent, posting an increase of 15 basis points (bps).

 

TMB’s gross non-performing assets (NPA) decreased to 1.32 per cent, from 1.69 per cent, an improvement of 37 bps.

 

Net NPA also declined to 0.41 per cent, from 0.98 per cent, an improvement of 57 bps.

 

"We remain committed to our strategic priorities of expanding our reach and enhancing customer experience. In this quarter, we have opened five new branches across key markets, further strengthening our distribution network.

 

We have entered into a few strategic partnerships with companies such as Oracle, Deloitte, and Bajaj Broking to leverage their expertise in various areas, including digital transformation and operational efficiency, to enhance customer growth," he added.

 

The bank’s net worth increased to Rs 8,715 crore, from Rs 7,668 crore last year, with an absolute rise of Rs 1,047 crore, registering a growth rate of 13.65 per cent.

 

The retail, agriculture, and MSME (RAM) segment increased to 92 per cent in Q3 FY25, as against 91 per cent in Q3 FY24.