TMB's net profit up 6% in Q1, driven by strong lending and deposit growth

Tamilnad Mercantile Bank's net profit hits a record Rs 304.9 crore in Q1FY26, driven by strong growth in core lending and deposit businesses

Thoothukudi-headquartered Tamilnad Mercantile Bank (TMB) has posted its highest-ever quarterly net profit of Rs 304.9 crore during the first quarter of financial year 2025-26, up 6 per cent from Rs 287.3 crore during the April to June quarter of the previous financial year.

 

Total income grew 7 per cent to Rs 1,617 crore during the quarter under review, compared to Rs 1,515 crore in June 2024. “We have achieved the highest-ever quarterly net profit in Q1FY26, driven by continued growth in our core lending and deposit businesses. We remain committed to our strategic priorities of expanding our reach and enhancing customer experience," said Salee S. Nair, Managing Director and Chief Executive Officer of TMB.

 

 

The bank's gross non-performing assets (NPA) improved by 22 basis points to 1.22 per cent from 1.44 per cent. Its net NPA also decreased to 0.33 per cent from 0.65 per cent, improving by 32 bps. 

 

The bank’s deposits increased to Rs 53,803 crore during the period, up from Rs 49,188 crore last year. Advances also increased to Rs 45,120 crore, reflecting a growth rate of 10.44 per cent on a YoY basis. Net Interest Income for the quarter stood at Rs 580 crore for Q1FY26, compared to Rs 567 crore for Q1FY25, registering a growth rate of 2.29 per cent. The bank’s net worth increased to Rs 9,328 crore, up from Rs 8,244 crore last year, reflecting an absolute rise of Rs 1,084 crore, or a growth rate of 13.15 per cent. The RAM (Retail, Agri, and MSME) segment increased to 93.31 per cent for Q1FY26, compared to 92.07 per cent for Q1FY25.

 

"In this year, we have opened 7 new branches in this quarter across key markets, further strengthening our distribution network. We have also entered into several strategic partnerships for the digital transformation of the bank, increasing operational efficiency, and enhancing customer growth. We believe that these 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 Nair.