Thoothukudi-headquartered Tamilnad Mercantile Bank (TMB) has posted an 11 per cent rise in net profit during the second quarter of the financial year 2024-25 (Q2FY25) to Rs 303.2 crore, compared to Rs 273.5 crore during the same period last financial year. This is the bank's highest-ever net profit, driven by a rise in net interest income.
"Our good show in net profit was driven by a rise in net interest income and other income and control over expenses. Our priority is to modernise this bank," said Salee S Nair, managing director and chief executive officer, TMB. On Monday, the bank signed a wage revision agreement, impacting costs by Rs 5 crore per month. Net interest income stood at Rs 596 crore for Q2FY25, compared to Rs 533 crore for Q2FY24, registering a growth rate of 11.89 per cent.
Total income grew 15 per cent to Rs 1,565 crore during the quarter under review, from Rs 1,365 crore during the July to September period last financial year. During the quarter, the bank's non-interest income rose from Rs 156 crore to Rs 227 crore, posting an increase of 46 per cent.
Operating profit improved to Rs 465 crore from Rs 365 crore, registering a growth of 27.4 per cent. Net interest margin increased to 4.25 per cent from 4.1 per cent, posting a 15 basis point rise.
The bank's gross non-performing assets (NPA) decreased to 1.37 per cent from 1.7 per cent, improving by 33 basis points. Its net NPA fell to 0.46 per cent from 0.99 per cent, improving by 53 basis points.
The bank’s deposits increased to Rs 49,342 crore compared to Rs 47,314 crore last year. Advances grew to Rs 42,533 crore, with a growth rate of 12.59 per cent on a year-on-year basis. The bank’s net worth increased to Rs 8,430 crore (last year Rs 7,384 crore), with an absolute rise of Rs 1,046 crore, registering a growth rate of 14.17 per cent. The RAM segment increased to 92 per cent in Q2FY25, up from 91 per cent in Q2FY24.