Tamilnad Mercantile Bank Q2FY26 Net Profit Rises 4.95% YoY to ₹318 Crore; Stock Up 2.68%

Thoothukudi, October 28: Tamilnad Mercantile Bank Ltd has announced its financial results for the quarter ending September 30, 2025. The company reported a net profit of ₹318 crore, which is a rise of 4.95% year-on-year. It also reported a 11.4% rise in its total business at ₹1.02 lakh crore, marking its highest annual growth since its shares listed on NSE and BSE.

Tamilnad Mercantile Bank Ltd is an Indian private sector bank. It provides banking and financial services to individuals and institutions. The bank was established in 1921, and is headquartered in Thoothukudi, Tamil Nadu. The shares of the company are listed on NSE with the ticker symbol TMB and on BSE with the code 543596.

Tamilnad Mercantile Bank Q2FY26 Financial Highlights

Tamilnad Mercantile Bank’s total deposits increased by 12.32% year-on-year to ₹55,421 crore and its total advances increased by 10.34% to ₹46,930 crore. CASA was at ₹15,163 crore, and total business expanded by 11.40% to ₹1,02,351 crore.

The bank recorded a net profit of ₹318 crore, which was a 4.95% increase from ₹303 crore in Q2 FY25. Net worth increased by 12.03% to ₹9,444 crore. Book value per share increased to ₹596.38 from ₹532.37. Gross NPA fell to a 10-year low of 1.01% from 1.37%. Net NPA declined to 0.26% from 0.46%.

The Capital Adequacy Ratio (CRAR) grew to 30.96% from 29.59%, while EPS rose to ₹20.05 from ₹19.15. The company’s Net Interest Income stood at ₹597 crore, up 0.17% year-on-year. The Provision Coverage Ratio (PCR) rose 74.36%.

The Retail, Agriculture, and MSME (RAM) segment expanded 13.02% year-on-year to ₹44,392 crore. During the quarter, the bank opened nine new branches. It included its 600th branch at Vizhinjam in Kerala, and new branches at Tenali and Mangalagiri in Andhra Pradesh.

Strategic Initiatives And Digital Developments

The bank launched TMB Rewards Programme for RuPay Debit Cards. It also announced the adoption of the Oracle Fusion CX Platform for CRM and Vendor Management System (VMS) via Deloitte. This will allow UPI on RuPay Credit Cards. It also announced the empanelment of Canara Robeco AMC for mutual fund distribution. The bank also introduced a BPM-based fund transfer facility, along with port tax payment option for Kamarajar Port via Internet Banking. Furthermore, it also announced a corporate agency tie-up with Bajaj Allianz General Insurance. It also launched a Customs Duty payment facility for government transactions, and an AI-enabled call centre for customer support. In more developments, it announced a digital payment partnership with Wegofin Digital Solutions under the BAPA model, and an automated reconciliation system for digital transaction settlements.

Shares Rise By 2.68% At ₹469.55 After The Financial Results

As of 10:30 AM, Tamilnad Mercantile Bank Ltd share price is up by 2.68%, or 12.25 points, and is trading at ₹469.55. Until now, the shares have traded within a range of ₹482 and ₹460.05. The current traded volume stands at 6.09 lakh shares. The company’s current market cap is at ₹7,241 crore.

REF: https://nsearchives.nseindia.com/corporate/9659523378_27102025220038_98.pdf

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