Tamilnad Mercantile Bank Q2 Net Profit Surges 42% YoY

Financial Performance Overview

Tamilnad Mercantile Bank Ltd announced its unaudited financial results for the quarter and half-year ended September 30, 2026, approved by the Board of Directors in their meeting held at Thoothukudi on October 26, 2026.

Key Financial Metrics (YoY Comparison)

| Total Deposits | ₹69,546 Cr | ₹55,421 Cr | 25.49% |

| Total Advances | ₹60,691 Cr | ₹46,930 Cr | 29.32% |

| CASA | ₹17,629 Cr | ₹15,163 Cr | 16.26% |

| Total Business | ₹130,237 Cr | ₹102,351 Cr | 27.25% |

| Retail, Agri & MSME (RAM) | ₹57,247 Cr | ₹44,392 Cr | 28.96% |

| Net Profit | ₹451 Cr | ₹318 Cr | 42.09% |

| Networth | ₹10,769 Cr | ₹9,444 Cr | 14.03% |

| Book Value (₹) | ₹680.09 | ₹596.38 | 14.03% |

| ROA % | 2.18 | 1.85 | 33 bps |

| ROE % | 16.92 | 13.77 | 315 bps |

| Gross NPA(%) | 0.61 | 1.01 | -40 bps |

| Net NPA(%) | 0.14 | 0.26 | -12 bps |

| EPS (₹) (Not Annualised) | 28.49 | 20.05 | ₹8.44 |

| CRAR % | 32.39 | 30.96 | 143 bps |

Performance Highlights

Business Growth:

Total business grew by 27.25% year-on-year, representing the highest growth since the bank's listing
Deposits increased by 25.49% YoY to ₹69,546 crore (from ₹55,421 crore)
Advances grew by 29.32% YoY to ₹60,691 crore (from ₹46,930 crore)
CASA increased to ₹17,629 crore (from ₹15,163 crore), up 16.26%
RAM segment (Retail, Agriculture & MSME) grew by 28.96% YoY

Profitability:

Net profit surged 42.09% to ₹451 crore from ₹318 crore
Net Interest Income (NII) grew 35.17% to ₹807 crore for Q2 FY2027 from ₹597 crore in Q2 FY2026
Return on Assets (ROA) improved by 33 basis points to 2.18%
Return on Equity (ROE) improved by 315 basis points to 16.92%
Earnings per share (EPS) increased to ₹28.49 from ₹20.05

Asset Quality:

Gross NPA reduced to 0.61%, the lowest in the last 10 years (from 1.01%, improved by 40 bps)
Net NPA reduced to 0.14% (from 0.26%, improved by 12 bps)
Provision Coverage Ratio (without technical write-off) improved to 77.49% from 74.36%
Total SMA to Gross Advances reduced to 1.67% from 2.67%, improved by 100 bps

Capital Adequacy:

CRAR increased to 32.39% from 30.96%, improved by 143 basis points
Networth increased by 14.03% to ₹10,769 crore (from ₹9,444 crore), with an absolute rise of ₹1,325 crore
Book value per share increased to ₹680.09 from ₹596.38

Operational Highlights

The bank has pan-India presence with 631 branches and 13 Regional Offices across 17 states and 4 Union Territories
Serves more than 5.3 million customers
Opened 3 new branches during Q2 FY2027

Management Commentary

Shri. Salee S Nair, MD & CEO of the Bank, stated: \"Our performance in Q2 FY2027 reflects the strength of our core banking business, with retail banking continuing to be a key contributor and business gaining momentum overall. As we enter the festive season, we see opportunities to support increased business activity across the markets we serve, particularly among traders and MSMEs preparing for higher inventory requirements and working capital needs. With our deep understanding of local businesses and customer relationships built over decades, we are well positioned to support these evolving credit requirements while continuing to serve the financial needs of households. Going forward, our focus will be on building this business momentum, expanding our reach and ensuring that growth is supported by sound underwriting and a sustained commitment to customer service.\"

Business Outlook

The bank emphasized its positioning to support evolving credit requirements during the festive season, particularly for traders and MSMEs with inventory and working capital needs. The focus remains on building business momentum, expanding reach, and ensuring growth is supported by sound underwriting and customer service commitment.