Chennai: Private sector Tamilnad Mercantile Bank (TMB) on Monday reported a 28% increase in net profit at Rs 374 crore for the quarter ended March 31, 2026, compared to Rs 292 crore in the corresponding quarter of the previous year. The growth was driven by multiple factors, primarily interest income aided by record growth in advances and lower provisions.
Full-Year Performance
For the full financial year 2025-26, the bank's net profit stood at Rs 1,338 crore, up from Rs 1,183 crore in FY25. Total advances increased by 20.3% to Rs 53,379 crore in FY26, against Rs 44,366 crore in FY25. Deposits grew by 14.9% year-on-year to Rs 61,712 crore, compared to Rs 53,689 crore in the previous year. The total business expanded by 17% to Rs 1,15,091 crore in FY26.
Asset Quality Improvement
The bank's asset quality improved significantly. Gross non-performing assets (NPA) decreased to 0.73% in FY26 from 1.25% in FY25, an improvement of 52 basis points. Net NPA declined to 0.18% from 0.36% during the same period.
Future Growth Targets
"The bank aims to grow its advances by 20%, deposits and total business by 16% and 18%, respectively year-on-year in the current fiscal FY27 over FY26," TMB Managing Director and Chief Executive Officer Salee S Nair told reporters through a virtual press conference.
Loan Portfolio Composition
The Tuticorin-headquartered bank's Retail, Agriculture and MSME (RAM) segment comprised about 95% of the total advances in FY26, while 5% was accounted for by the corporate segment. "When we re-enter the corporate book, its share in our overall advance book will not be more than 10%," Nair added.
Gold Loan Resilience
Asked about the impact on gold loans from volatile gold prices, Nair said, "We are quite aware that there is a commodity risk attached to the gold loan portfolio. If there is a fall in gold price to the extent of 25%, our portfolio can withstand."
