Capital Adequacy Ratio remained robust at 32.33%, providing ample headroom for growth; Thebank records Highest-Ever Quarterly Net Profit
FinTech BizNews Service
Mumbai, July 27, 2026: The Board of Directors of Tamilnad Mercantile Bank Ltd has approved the Unaudited Financial Results for the Quarter Ended June 30, 2026 in their meeting held at Thoothukudi on 27.07.2026. Shri. Salee S Nair, Managing Director and CEO of the bank declared the results. Executive Director, Chief Financial Officer, Executive Vice Presidents and other senior officials of the Bank were also present in the event.
Shri. Salee S Nair, MD & CEO, Tamilnad Mercantile Bank Ltd said,"The first quarter of FY27 marks a positive start to the financial year, reflecting the continued strength of our business franchise and the disciplined execution of our strategic priorities. The growth delivered during the quarter is broad-based, supported by healthy business momentum, improved operating performance and our continued focus on maintaining a strong and resilient balance sheet. This performance is particularly encouraging against the backdrop of an evolving macroeconomic environment, reaffirming the resilience of our business model and the strength of our fundamentals. We are equally encouraged in stable asset quality alongside business growth, reaffirming our commitment to responsible lending and prudent risk management. The improving monsoon outlook is expected to support rural economic activity and credit demand, and together with our strong balance sheet and diversified portfolio, provides us with confidence to continue delivering sustainable growth. As we move through FY27, our priorities remain centred on deepening customer relationships, strengthening our retail, MSME and agriculture franchises, expanding our deposit base, and accelerating investments in technology and digital capabilities to enhance customer experience and operational efficiency. With a strong capital position, disciplined execution and a clear strategic roadmap, we remain well positioned to sustain our growth momentum while continuing to create long-term value for our customers, shareholders and all our stakeholders."
The Bank continues to post strong performance in all fundamental parameters:
Total Business grew by 23.04% YoY, rising to Rs1,21,715 crore (PY Rs98,923 crore).
Total Deposits grew by 19.71% YoY, rising to Rs64,409 crore (PY Rs53,803 crore).
CASA increased to Rs16,852 crore (PY Rs14,411 crore), a growth of 16.94% YoY.
Advance increased to Rs57,306 crore (PY Rs45,120 crore), a growth of 27.01% YoY.
Net profit surged to Rs411.51 crore from Rs304.89 crore, up 34.97% YoY.
Operating profit surged to Rs611.07 crore from Rs412.26 crore, up 48.22% YoY.
Net NPA improved to 0.17% from 0.33%, an improvement of 16 bps.
Gross NPA improved to 0.69% from 1.22%, an improvement of 53 bps.
PCR (without technical written off) improved to 75.36% from 73.04%
Total SMA to Gross Advances reduced to 2.21% from 3.05%, down 84 bps.
CRAR improved to 32.33% from 31.55%, up 78 bps.
Book value per share increased to Rs667.00 from Rs589.09.
Return on Average Assets increased to 2.14% from 1.82%.
Return on Equity increased to 15.93% from 13.30%.
Net Interest Income increased to Rs765.08 crore from Rs579.55 crore, a growth of 32.01% YoY.
Net Interest Margin (NIM) improved to 4.29% from 3.84%, up 45bps YoY.
Networth increased to Rs10,562 crore (PY Rs9,328 crore), an absolute rise of Rs1,234 crore, up 13.23%.
The RAM segment share increased to 94.38 % from 93.31%.
New Branch Opening
The Bank opened 6 New Branches and 1 Regional Office during the first quarter of FY2027
The Bank remains committed to delivering value to its stakeholders.
