 "Tamilnad Mercantile Bank, TMB")
Tamilnad Mercantile Bank (TMB) on Friday posted a 5 per cent increase in net profit at Rs 274 crore for the second quarter of FY24, compared to Rs 262 crore in the same period in FY23.
The bank's total income during the period was up by 16 per cent, from Rs 1,141 crore in September 2022-23 to Rs 1,365 crore in the second quarter of FY24. The lender's asset quality profile remained healthy with gross non-performing assets (GNPAs) at 1.70 per cent in September 2023, compared with 1.70 per cent in the year-ago period. Net NPAs dipped to 0.86 per cent from 0.99 per cent. The bank's provision coverage ratio improved to 88.58 per cent for the quarter under review from 86.42 per cent a year ago.
The total business of the bank at the second quarter ended 2023-24 stood at Rs 85,092 crore with a growth rate of 9.07 per cent. "Our interest income has gone up by 21 per cent. This is one of the major reasons for the rise in profit. Our bank has been consistently showing profits all the years," said S Krishnan, managing director and chief executive officer of the bank.
The bank's deposits had increased to Rs 47,314 crore by the end of September 2023, as compared to Rs 43,137 crore the previous year. The advance level of the bank has increased to Rs 37,778 crore with a growth rate of 8.32 per cent on a year-on-year (Y-o-Y) basis. The Net Interest Income (NII) has increased to Rs 533 crore for the quarter, Q2 FY24 (Q2 FY23 Rs 509 crore), registering a growth rate of 4.72 per cent. Return on Asset was seen at 1.89 per cent and Return on Equity at 15.01 per cent for the reporting quarter, versus 2.03 per cent and 17.65 per cent during Q2 FY23. The bank's net worth increased to Rs 7,384 crore (PY Rs 6,461 crore) with an absolute rise of Rs 923 crore, registering a growth rate of 14.29 per cent.
