Date: 27.07.2026

Financial Performance Overview

Tamilnad Mercantile Bank Ltd reported strong unaudited financial results for the quarter ended June 30, 2026 (Q1 FY2027), showing significant growth across all key parameters.

Key Financial Metrics

| Parameters | June 2025 (Q1) | June 2026 (Q1) | Growth – YoY % |

| Net Profit | ₹304.89 crore | ₹411.51 crore | 34.97% |

| Operating Profit | ₹412.26 crore | ₹611.07 crore | 48.22% |

| Net Interest Income | ₹579.55 crore | ₹765.08 crore | 32.01% |

| Total Business | ₹98,923 crore | ₹1,21,715 crore | 23.04% |

| Total Deposits | ₹53,803 crore | ₹64,409 crore | 19.71% |

| CASA | ₹14,411 crore | ₹16,852 crore | 16.94% |

| Total Advances | ₹45,120 crore | ₹57,306 crore | 27.01% |

| Retail, Agri & MSME (RAM) | ₹42,099 crore | ₹54,083 crore | 28.47% |

Profitability Ratios

  • Return on Assets (ROA) improved to 2.14% from 1.82% (up 32 bps)
  • Return on Equity (ROE) improved to 15.93% from 13.30% (up 263 bps)
  • Net Interest Margin (NIM) improved to 4.29% from 3.84% (up 45 bps YoY)
  • Earnings Per Share (EPS) increased to ₹25.99 from ₹19.25 (35.01% growth)

Asset Quality & Capital Adequacy

  • Gross NPA improved to 0.69% from 1.22% (improvement of 53 bps)
  • Net NPA improved to 0.17% from 0.33% (improvement of 16 bps)
  • Provision Coverage Ratio (without technical write-off) improved to 75.36% from 73.04%
  • Total SMA to Gross Advances reduced to 2.21% from 3.05% (down 84 bps)
  • Capital to Risk-weighted Assets Ratio (CRAR) improved to 32.33% from 31.55% (up 78 bps)
  • Networth increased to ₹10,562 crore from ₹9,328 crore (13.23% growth, absolute rise of ₹1,234 crore)
  • Book Value per share increased to ₹667.00 from ₹589.09 (13.23% growth)

Business Segment Performance

The RAM (Retail, Agriculture & MSME) segment share increased to 94.38% from 93.31%, indicating continued focus on these core segments.

Expansion Activities

The bank opened 6 new branches and 1 regional office during the first quarter of FY2027, expanding its pan-India presence which now includes 628 branches and 13 regional offices across 17 states and 4 union territories, serving over 5.3 million customers.

Management Commentary

Shri. Salee S Nair, MD & CEO of Tamilnad Mercantile Bank Ltd, stated that Q1 FY2027 marks a positive start to the financial year reflecting the continued strength of the business franchise and disciplined execution of strategic priorities. He highlighted broad-based growth supported by healthy business momentum, improved operating performance, and focus on maintaining a strong and resilient balance sheet.

The management emphasized stable asset quality alongside business growth, reaffirming commitment to responsible lending and prudent risk management. They noted that the improving monsoon outlook is expected to support rural economic activity and credit demand.

Key priorities for FY2027 include deepening customer relationships, strengthening retail, MSME and agriculture franchises, expanding deposit base, and accelerating investments in technology and digital capabilities to enhance customer experience and operational efficiency.