Tamilnad Mercantile Bank Ltd (TMB) posted a net profit of ₹3.18 billion for Q2 FY2026, up 4.7% year-on-year. Interest earned stood at ₹14.13 billion, while gross NPAs improved to 1.01%. The bank maintained strong capital adequacy and low provisioning, signaling stable financial health.
Tamilnad Mercantile Bank Ltd has reported a 4.7% year-on-year increase in net profit, reaching ₹3.18 billion for the quarter ended September 2025. The bank’s interest earned rose to ₹14.13 billion, supported by healthy growth in advances and stable yields. Despite sectoral headwinds, TMB maintained its profitability and operational efficiency.
The bank’s gross non-performing assets (NPAs) improved to 1.01%, while net NPAs stood at 0.26%, reflecting robust credit monitoring and recovery efforts. Provisions and contingencies for the quarter were limited to ₹200.1 million, indicating controlled risk exposure. TMB also reported a capital adequacy ratio of 30.96%, well above regulatory norms.
Major Takeaways:
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Net Profit: ₹3.18 billion, up 4.7% YoY
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Interest Earned: ₹14.13 billion in Q2 FY2026
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Gross NPA: Improved to 1.01%; Net NPA at 0.26%
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Provisions: ₹200.1 million, reflecting low stress levels
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Capital Adequacy: Strong at 30.96%, ensuring growth headroom
Tamilnad Mercantile Bank’s consistent performance and asset quality improvement reinforce its position as a stable player in India’s private banking sector.
Sources: ScanX News, The Hindu BusinessLine, Tamilnad Mercantile Bank