CHENNAI: Thoothukudi-based Tamilnad Mercantile Bank (TMB) on Monday reported a net profit of Rs 411.51 crore in Q1FY27 compared to Rs 304.89, a rise of 35% year-on-year, driven by increase in net interest and improved asset quality. The total income rose to Rs 1,901 crore during the June quarter of the current fiscal year from Rs 1,617 crore in the same quarter of FY26, TMB said in a regulatory filing.
Interest earned by the bank improved to Rs 1,662 crore in the June quarter of FY26 compared to the year-ago's Rs 1,386 crore. Net Interest Income of the bank rose by 32 percent to Rs 765 crore from Rs 580 crore in Q1 of the previous financial year.
Addressing the mediapersons, Salee Saikumaran Nair, CEO of the Bank, said that the TMB is foraying into non-fund-based facility. “We have made 100% provision in the non-fund-based facility which are stressed.
Out of the total provisions, Rs 26 crore is for this facility.” The total provision of the bank is Rs 53.93 crore. In a post-result interaction with media, Tamilnad Mercantile Bank MD and CEO Nair said the bank is exploring an option of opening a representative office overseas to mobilise deposits from NRIs.
With regard to IT spending, he said the bank would spend Rs 280 crore on improving infrastructure, mobile app etc. The bank would ramp up presence in Tamil Nadu, Maharashtra and Gujarat, he said. The bank’s net NPA witnessed 16 bps decline to 0.17% and gross NPA stood at 0.69%, falling 53 bps in the current quarter. Its CASA rose 16% from Rs 14,411 crore to Rs 16,852 crore year-on-year. The gold loan portfolio grew to Rs 27,404 crore in Q1FY27. The bank's capital adequacy ratio rose to 32.33 per cent, from 31.55 per cent in the same quarter of FY26.
