Tamilnad Mercantile Bank posts 10% rise in Q1 net, maintains asset quality

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Tamilnad Mercantile Bank (TMB) has reported a 10 per cent rise in its net profit at ₹287 crore for the June 2024 quarter when compared with ₹261 crore in the corresponding quarter last year, supported by growth in interest income and other incomes amid higher provisions.

The Thoothukudi (Tamil Nadu)-headquartered old private sector bank’s operating profit was ₹469 crore in Q1FY25 against ₹380 crore in the year-ago quarter.

Interest income grew to ₹1,281 crore in Q1 of this fiscal (₹1,156 crore in the year-ago quarter), while non-interest income rose to ₹234 crore (₹167 crore). Net interest income grew by 10 per cent to ₹567 crore as against ₹514 crore. Total expenditure was at ₹1,046 crore (₹943 crore).
The bank maintained its gross and net NPAs below 2 per cent and 1 per cent respectively. As of June 30, 2024, the Gross NPA as a percentage of total advances stood at 1.44 per cent, down from 1.56 per cent in the year-ago quarter. The net NPA stood at 0.65 per cent, down from 0.66 per cent in the year-ago period.
Total advances grew by 10 per cent to ₹40,853 crore as against ₹37,292 crore, while total deposits grew by 5 per cent to ₹49,188 crore from ₹47,008 crore.

At ₹37,614 crore (₹33,574 crore in Q1FY24), the RAM (retail, agriculture, and MSME) sector accounted for 92 per cent of gross advances in Q1 of this fiscal, up from 90 per cent a year ago.

Return on assets stood at 1.88 per cent in Q1FY25 as against 1.85 per cent a year ago, while return on equity dropped to 14.22 per cent from 14.80 per cent. The net worth of TMB has increased to ₹8,244 crore from ₹7,190 crore.

The company’s scrip closed at ₹452.80 per share, down 0.53 cent, on BSE on Friday.