Tamilnad Mercantile Bank Q1 Profit Surges 35% to Rs 412 Cr

New Delhi: Tamilnad Mercantile Bank (TMB) on Monday reported a 35 per cent jump in net profit to Rs 412 crore for the first quarter ended June 30 on improvement in its core income.

The bank had a net profit of Rs 305 crore in the June quarter of the previous fiscal.

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, as compared to Rs 1,386 crore in the June quarter of FY26.

Net Interest Income of the bank rose by 32 per cent to Rs 765 crore from Rs 580 crore in Q1 of the previous financial year.

In a post-result interaction with media, Tamilnad Mercantile Bank MD and CEO Salee Sukumaran 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.

During the period under review, operating profit increased to Rs 611 crore from Rs 412 crore in the same quarter a year ago.

The bank’s asset quality showed improvement as gross non-performing assets (NPAs) declined to 0.69 per cent of gross advances at the end of the June quarter, from 1.22 per cent a year ago.

Similarly, net NPAs, or bad loans, declined to 0.17 per cent, as against 0.33 per cent in the year-ago period.

However, provisions and contingencies rose to Rs 54 crore during the first quarter compared to Rs 8 crore in the same period a year ago.

Provision Coverage Ratio (PCR) improved to 96.04 per cent, from 94.32 per cent at the end of the first quarter of the previous financial year.

At the same time, Return on Assets (ROA) deteriorated to 2.14 per cent in June 2026, from 1.82 per cent in June 2025.

The bank’s capital adequacy ratio rose to 32.33 per cent, from 31.55 per cent in the same quarter of FY26.

(Disclaimer: Except for the headline, this article has not been edited by HDFC Sky editorial team and is auto-generated from PTI feed.)