Tamilnad Mercantile Bank (TMB) reported a 35% year-on-year rise in net profit to ₹412 crore for the quarter ended June 2026 (Q1FY27), driven by strong growth in interest income and lower operating expenses. The robust earnings lifted the bank’s shares to a 52-week high of ₹917 on the NSE on Monday.
Interest income rose 20% year-on-year to ₹1,662.43 crore, while interest expenses increased at a slower pace of 11% to ₹897.35 crore. This helped the lender post a 32% jump in net interest income (NII) to ₹765.08 crore during the quarter. Net interest margin (NIM) expanded to 4.29%, compared with 3.81% in the corresponding quarter last year.
MD & CEO, Salee S Nair said, the first quarter performance is particularly encouraging against the backdrop of an evolving macroeconomic environment, “reaffirming the resilience of our business model and the strength of our fundamentals.”
Credit growth outpaced deposit mobilisation, pushing the credit-deposit ratio up by 511 basis points to 88.97%. Gross advances grew 27% year-on-year to ₹57,306 crore, while deposits increased 20% to ₹64,409 crore. Total business stood at ₹1.22 lakh crore as of the June 2026 quarter.
Retail, agriculture and MSME advances grew 28% to ₹54,083 crore, accounting for more than 94% of the bank’s gross advances. TMB’s export credit accounted for 3.53% of its total MSME and corporate loan book, while its exposure to West Asian countries stood at ₹32.14 crore, representing 0.06% of total advances.
On the liabilities side, low-cost CASA deposits grew 17% year-on-year to ₹16,852 crore, while term deposits increased 21% to ₹47,557 crore during the quarter.
The bank also reported another quarter of improvement in asset quality. Gross non-performing assets (GNPA) declined to 0.69% from 1.22% a year earlier, while net NPAs halved to 0.17%.