Earnings Review
Tamilnad Mercantile Bk PAT up 11% as income rises, NPAs fall
This story was originally published at 20:56 IST on 28 October 2024
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--Tamilnad Mercantile Bank provision coverage ratio 92.56% as on Sept 30
--Tamilnad Mercantile Bank Basel III capital adequacy ratio 29.59% Sept 30
--Tamilnad Mercantile Bk Apr-Sept total income INR 30.80 bln vs INR 26.88 bln
--Tamilnad Mercantile Bank net NPA ratio 0.46% Sept 30 vs 0.65% qtr ago
--Tamilnad Mercantile Bank gross NPA ratio 1.37% Sept 30 vs 1.44% qtr ago
--Tamilnad Mercantile Bank Apr-Sept PAT INR 5.90 bln vs INR 5.35 bln yr ago
--Tamilnad Mercantile Bk Jul-Sept provisions INR 649.3 mln vs INR 232.9 mln
--Tamilnad Mercantile Bk Jul-Sept total income INR 15.65 bln vs INR 13.65 bln
--Tamilnad Mercantile Bank Jul-Sept PAT INR 3.03 bln vs INR 2.74 bln yr ago
By Gowri Lakshmi
MUMBAI – Tamilnad Mercantile Bank reported a net profit of INR 3.03 billion, up 11% on year for the quarter ended September. The rise in total income and a fall in the asset quality aided the bank's bottom line.
The total income of the bank rose 14.6% on year to INR 15.65 billion in the Jul-Sept quarter. The net interest income of the bank stood at INR 5.96 billion, up 11.9% on year. The net interest margin increased to 4.25% in the reporting quarter from 4.10% a year ago.
In terms of asset quality, the gross non-performing asset ratio improved to 1.37% as of Sept. 30 from 1.44% a quarter ago and the net NPA ratio fell to 0.46% as of Sept. 30 from 0.65% a quarter ago.
The provisions and contingencies of the bank increased sharply on year to INR 649.3 million from INR 232.9 million as reported a year ago. However, on a sequential basis, the bank's provisions were down by 24.01%. The provision coverage ratio of the bank stood at 92.56% as on Sept. 30.
As per the bank's notes, the bank had to continue holding COVID-19 related provision of INR 2.5 billion as on Sept.30, to meet any exigencies arising out of the COVID-19 pandemic, the bank said in its financial results statement. The bank also provided an amount of upto 1.13 billion toward wage arrears on an ad hoc basis pending negotiations with the Employees or Officers' Association.
Total advances rose significantly by 12.59% on year to INR 425.33 billion as on Sept. 30. "The RAM (retail, agri and MSME) segment has increased to 92% for the Q2FY25 (Jul-Sept) as against 91% for Q2FY24." Advances to the retail, agri and MSME segment stood at INR 342.67 billion as on Sept. 30, up 14.62% a year ago.
The total deposits grew 4.29% to INR 493.42 billion as of Sept. 30, from INR 473.17 a year ago. The bank's current account, savings accounts deposits rose 5.32% on year to INR 138.73 billion as of Sept.30. The bank opened 15 new branches during Apr-Sept.
The capital adequacy ratio of the bank stood at 29.59% as on Sept. 30.
The bank’s total income for Apr-Sept was INR 30.80 billion, up from INR 26.88 in the same period a year ago. The bank’s total profit stood at INR 5.90 billion for Apr-Sept, up from INR 5.35 billion in the previous year.
On Monday, shares of Tamilnad Mercantile Bank ended 1.67% higher at INR 431.65 on the National Stock Exchange. The company released its earnings for the quarter ended September post Indian market hours. End
Edited by Akul Nishant Akhoury
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