Tamilnad Mercantile Bank Q4 Profit Rises 15.3% YoY to ₹292 Crore

24 Apr 2025 , 10:27 PM

Tamilnad Mercantile Bank Ltd (TMB) posted a 15.3% year-over-year (YoY) rise in net profit for the period ending March 2025 at ₹291.9 crore from ₹253.1 crore during Q4 FY24.

Net Interest Income (NII) of the bank, a proxy for its core lending business, was ₹567.9 crore, up slightly by 0.2% YoY from ₹567 crore. Despite a stable loan book, interest margins remained unchanged, as they were mostly influenced by the persistent high-interest rate regime in the banking space.

Asset quality-wise, the bank showed strong sequential improvement:

• Gross NPA (GNPA) declined to 1.25%, from 1.32% previous quarter.
• Net NPA increased to 0.35%, from 0.41% QoQ, due to better loan recovery and cautious risk management.

TMB continues to focus on retail and MSME customer franchise, particularly in south India, where it enjoys a strong regional franchise. The bank is keenly driving digital transformation initiatives to enhance customer experience and operating efficiency. Initiatives are also undertaken to increase capital adequacy ratios and improve productivity in its branch network.