Tamilnad Mercantile Bank posts ‘highest-ever’ Q2 net profit

Tamilnad Mercantile Bank Ltd.’s (TMB) standalone net profit for the September quarter rose 11% to ₹303 crore on account of an increase in net interest income, interest income and a reduction in non-performing assets (NPAs).

Interest income rose to ₹1,337 crore from ₹1,209 crore. Net interest income grew 12% to ₹596 crore while net interest margin improved to 4.25% from 4.10%. Non-interest income stood at ₹227 crore against ₹156 crore, the private sector lender said.

“This is the highest-ever net profit, net interest income and interest income, the bank has recorded. We hope to build on the credible performance. We posted over 12% increase in credit growth and for the full year, we expect to maintain it over 13% growth,” said MD and CEO Salee S. Nair.

Gross NPAs declined by 33 bps to 1.37% while net NPAs slid to 0.46% from 0.99%. Provision coverage ratio improved to 66.40% (41.96%). Slippages during the period was ₹63 crore while cash recovery was ₹66 crore.

Total business rose to ₹91,875 crore from ₹85,092 crore. Deposits grew 4% to ₹49,342 crore while advances rose 13% to ₹42,533 crore. Capital adequacy ratio stood at 29.59% (26.04%).

He also said that they had successfully completed the wage revision pact, which was going on for last one year.