Tamilnad Mercantile Bank sees advances growing 15%, NIM at 3.85% by FY26-end
This story was originally published at 14:40 IST on 28 October 2025
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--Tamilnad Mercantile Bk: Aim to have 14-15% growth in advances in FY26
--CONTEXT: Comments from Tamilnad Mercantile Bk in post earnings press call
--Tamilnad Mercantile Bk: Aim for NIM of around 3.85% at end of FY26
--Tamilnad Mercantile Bk: Aim for deposit growth of 12-13% at end of FY26
--Tamilnad Mercantile Bk:RBI rate cuts fully passed to interest rate on loans
--Tamilnad Mercantile Bk: Don't need to raise capital for 2-3 yrs
MUMBAI – Tamilnad Mercantile Bank aims for a net interest margin of 3.85% by the end of the financial year 2025-26 (Apr-Mar), an increase of a mere 2 basis points from the current rate, Salee Sukumaran Nair, managing director and chief executive officer, told an online press conference Tuesday after the bank detailed its earnings for the September quarter. The lender's net interest margin for the quarter was 3.83%.
"...we are at 3.83% and I think we should be around 3.85%," Nair said. "It's certainly going to be slightly better than the current rate, so the re-pricing impacts will benefit us in the next two quarters and we are looking at closing the year at around 3.85% plus on the NIMs." The bank expects only marginal growth in net profit as it has fully passed on the cuts in the repo rate and cash reserve ratio to its loan customers.
The Tamilnadu-based bank expects its advances to grow by 14-15% by the end of FY26. In the September quarter, its gross advances were INR 469 billion, with growth of 10.3% on year. Along with this, the bank expects deposit growth of 12-13% in FY26. The lender reported total deposits of INR 552 billion with 12.3% on-year growth during the reporting quarter.
Additionally, the bank said it does not plan to raise new funds for the next 2-3 years and focus on using the existing capital. The bank's capital adequacy ratio stood at 31% in the September quarter.
The bank reported a net profit of INR 3.18 billion for the quarter, up 5% on year. Sequentially, its profit was up 4%. At 1415 IST, shares of the bank were up 2% at INR 466.25 on the National Stock Exchange. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Rati Chaphekar and Kabir Sharma
Edited by Rajeev Pai
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