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Informist, Monday, Jul. 27, 2026 

--Tamilnad Mercantile Bk Apr-Jun PAT INR 4.12 bln 

--Tamilnad Mercantile Bk Apr-Jun total income INR 19.01 bln 

--Tamilnad Mercantile Bk Apr-Jun PAT INR 4.12 bln vs INR 3.05 bln yr ago 

--Tamilnad Mercantile Bk gross NPA ratio 0.69% on Jun 30 vs 0.73% qtr ago 

--Tamilnad Mercantile Bk Q1 total income INR 19.0 bln vs INR 16.2 bln yr ago 

--Tamilnad Mercantile Bk net NPA ratio 0.17% on Jun 30 vs 0.18% qtr ago 

--Tamilnad Mercantile Bk Basel III capital adequacy ratio 32.33% on Jun 30 

--Tamilnad Mercantile Bk Q1 provisions INR 539.3 mln vs INR 83.4 mln yr ago 

--Tamilnad Mercantile Bank provision coverage ratio 96.04% on Jun 30 

By Meera Nair

MUMBAI – Tamilnad Mercantile Bank Ltd. posted the highest net profit in 13 quarters in the June quarter, driven by higher interest income and total income. A meteoric rise in provisions limited the gain in the bottom line of the bank. 

The bank's net profit rose 35% on year to INR 4.12 billion. Interest earned increased 20% to INR 16.62 billion, while total income rose nearly 18% to INR 19.01 billion. 

Provisions of the bank rose over six times to INR 539 million in the June quarter. 

The bank's asset quality improved modestly from the previous quarter. The gross non-performing asset ratio was at 0.69% as of Jun. 30, compared with 0.73% a quarter ago. Meanwhile, the net non-performing asset ratio eased to 0.17% from 0.18% in the trailing quarter. 

The lender's Basel-III capital adequacy ratio stood at 32.33% as of Jun. 30, while its provision coverage ratio was 96.04%. 

Earlier this month, the bank said that it had raised its marginal cost of funds-based lending rates by 10 basis points across tenures with effect from Jul. 7. The revised MCLR ranges from 7.70% to 9.35% for overnight to one-year tenures, the bank said in its filing. 

For the March quarter, its net profit was INR 3.74 billion on total income of INR 17.92 billion. At 1417 IST, the bank's shares were at INR 856.45 on the National Stock Exchange, up 6.5%.

The lender's net interest margin stood at 4.29% for the June quarter, against 3.84% a year ago and 4.18% a quarter ago, it said in its investor presentation. The cost of deposits stood at 5.68% for the reporting quarter, against 5.71% a quarter ago, while the cost of funds was at 5.70%, compared to 5.72% a quarter ago, it said.  End 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Avishek Dutta

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