Tamilnad Mercantile Bank profits jump 28% on strong growth
Tamilnad Mercantile Bank profits jump 28% on strong growth
Tamilnad Mercantile Bank posts a 28% Q4 profit rise, driven by robust loan growth, higher income, and better margins.
Tamilnad Mercantile Bank posted a 28% jump in fourth-quarter net profit to Rs 374 crore, up from Rs 292 crore a year ago, as the lender benefited from robust business growth, higher income, and improved margins. The bank said the quarterly operating profit rose 29% to Rs 522 crore, alongside a 16% uptick in total income to Rs 1,792 crore. Net interest margin for the quarter rose to 4.18% from 3.91% a year earlier, underscoring stronger core profitability.
Advances expanded 20.3% year-on-year to Rs 53,379 crore, while deposits grew 14.9% to Rs 61,712 crore, reflecting sustained expansion across lending and deposit franchises. The bank's asset quality also improved, with gross NPA easing to 0.73% at end-March from 1.25% a year earlier. For FY26, net profit stood at Rs 1,338 crore, up from Rs 1,183 crore in FY25. The board recommended a final dividend of Rs 12.50 per equity share of face value Rs 10, representing a 125% dividend for FY26. Managing director Salee S Nair said the bank's growth in both assets and liabilities is the highest in the past decade, highlighting the bank's sustained expansion and improving risk framework.
