Tamilnad Mercantile Bank Q1 results: Net profit up 10% at Rs 287.3 crore

Thoothukudi-headquartered Tamilnad Mercantile Bank (TMB) has posted a 10 per cent rise in net profit during the first quarter of the financial year 2024-25 to Rs 287.3 crore, compared to Rs 261.23 crore. During the quarter, the bank posted its highest-ever net profit, operating profit, total income, and interest income.

"The average advances for the bank have grown significantly, and the rise in interest income and non-interest income also contributed majorly to the profit addition," said a source on terms of anonymity. During the quarter, the bank's non-interest income grew from Rs 167 crore to Rs 234 crore.

Total income has grown 15 per cent to Rs 1,515 crore during the quarter under review, from Rs 1,323 crore during the same period last fiscal.

 

Operating profit has increased to Rs 469 crore from Rs 380 crore year on year, posting an increase of 23 per cent. Net interest margin has increased to 4.12 per cent from 4 per cent last year. Interest income has improved to Rs 1,281 crore during the quarter under review, up 11 per cent compared to Rs 1,156 crore during the first quarter of 2023-24.

The bank's gross non-performing assets (NPA) were at Rs 587.66 crore as against Rs 575.06 crore in the March quarter. Its net NPA were at Rs 261.56 crore, compared to Rs 335.82 crore during the same time last year.

In April, the Reserve Bank of India (RBI) rejected the names of the candidates proposed by TMB for the position of managing director (MD) and chief executive officer (CEO). After that, in June, RBI approved the appointment of a Committee of Executives (CoE) in TMB as an interim arrangement to oversee its operations and administration in the absence of a regular managing director.

S Krishnan — the current MD & CEO of the Tuticorin-based lender — resigned in September 2023 citing personal reasons but was asked to continue till the CoE was appointed.