Tamilnad Mercantile Bank Reports Record Q1 FY27 Profit; Net Profit Rises 35% to ₹412 Crore
Tamilnad Mercantile Bank Limited (TMB) has released the transcript of its earnings conference call for the quarter ended June 30, 2026 (Q1 FY27), reporting its highest-ever quarterly net profit in the bank’s 105-year history.
The strong performance was driven by healthy growth in advances and deposits, higher net interest income, improved margins, and continued improvement in asset quality.
Key Financial Highlights (Q1 FY27)
- Net Profit: ₹412 crore, up 34.97% year-on-year (YoY) – the highest quarterly profit in the bank’s history.
- Total Business: ₹1,21,715 crore, up 23% YoY, marking the strongest business growth in the past 14 years.
- Total Deposits: ₹64,409 crore, up 19.71% YoY.
- Advances: Increased 27.01% YoY.
- CASA Deposits: ₹16,852 crore, up 16.94% YoY.
- CASA Ratio: 26.16%.
Growth in advances was led by the Retail, Agriculture, and MSME (RAM) segment, which expanded 28.47% YoY.
Profitability Improves
The bank delivered strong growth in earnings during the quarter.
- Net Interest Income (NII): Increased 32.01% YoY.
- Net Interest Margin (NIM): Improved to 4.29%, up 45 basis points (bps) from the previous year.
- Operating Profit: ₹611 crore, up 48.22% YoY.
- Return on Assets (RoA): 2.14%, an improvement of 32 bps YoY.
- Return on Equity (RoE): 15.93%, up 263 bps YoY.
- Cost-to-Income Ratio: 39.10%.
- Capital Adequacy Ratio (CAR): 32.33%.
- Earnings Per Share (EPS): ₹25.99.
Asset Quality Strengthens Further
Tamilnad Mercantile Bank continued to maintain one of the strongest asset quality profiles in the banking sector.
- Gross NPA: 0.69%, improving by 53 bps YoY.
- Net NPA: 0.17%, improving by 16 bps YoY.
- Provision Coverage Ratio (PCR): 96.04%.
- Credit Cost: 9 basis points, reflecting prudent risk management.
The bank also reported that unsecured loans accounted for only 0.10% of total advances, highlighting its conservative lending approach.