TMB Q2FY23 PAT surges 36.8% at Rs262.3 crore on the back of improved interest spreads in the quarter

28 Oct 2022 , 08:38 AM

Tamilnad Mercantile Bank reported 3.66% growth in total revenues for the September 2022 quarter on consolidated basis at Rs1,141cr.

Revenue was flat in sequential terms. In terms of revenue contribution, the income from treasury and from corporate banking were lower on a yoy basis.

However, this was more than compensated by the sharp increase in retail banking income by 10.5% yoy at Rs791 crore.

However, in terms of operating profit contribution, while treasury reported lower profits, the operating profits from corporate banking and also from retail banking were higher on a yoy and QOQ basis in Q2FY23.

Consolidated Profit after tax (PAT) for September 2022 quarter was up 36.8% at Rs262.3cr and it was up 11.99% on sequential basis.

On a yoy margins, the operating margins improved from 29.14% to 34.1%. Gross NPAs for TMB fell from 3.31% to 1.70% yoy while the net NPAs fell from 1.82% to 0.86% yoy.

Return on assets improved from 1.58% to a healthy 2.04% on yoy basis. Capital adequacy is comfortable at 24.6%. Net profit margins at 22.98% in Q2FY23 is higher compared to 17.4% in Q1FY22 and betters 20.5% in Q1FY23.

Financial highlights for Sep-22 compared yoy and sequentially

	TMB
Rs in Crore	Sep-22	Sep-21	YOY	Jun-22	QOQ
Total Income (Rs cr)	₹ 1,141.49	₹ 1,101.20	3.66%	₹ 1,141.77	-0.02%
Net Profit (Rs cr)	₹ 262.30	₹ 191.74	36.80%	₹ 234.21	11.99%
Diluted EPS (Rs)	₹ 17.99	₹ 13.38		₹ 16.43
Net Margins	22.98%	17.41%		20.51%