Tamilnad Mercantile Bank Q2 Results: Net profit rises 42% to record Rs 451 crore on high net interest income

Synopsis

Tamilnad Mercantile Bank has set a remarkable milestone with a net profit of Rs 451 crore for the quarter from July to September. This success is buoyed by a substantial rise in interest income, totaling Rs 1,820 crore compared to the same period last year. Managing Director Salee Sukumaran Nair emphasized the role of net interest income in driving this profit.

Tamilnad Mercantile Bank on Monday reported its highest-ever quarterly net profit at Rs 451 crore for July-September, aided by higher net interest income and improved cost-cutting measures.

The Tamil Nadu-based private lender's net profit increased 42 per cent in the September quarter of the current financial year from Rs 317 crore in the corresponding period a year ago.

The lender's interest income rose 29 per cent to Rs 1,820 crore during Q2 FY27, from Rs 1,413 crore in the year-ago quarter.

At a media roundtable after the Q2 results, Tamilnad Mercantile Bank Managing Director and CEO Salee Sukumaran Nair said the net interest income (NII) of Rs 807 crore drove the bank's operating profit and net profit during the quarter.

The bank has recorded the highest-ever net profit in the September quarter of FY27 and the fastest year-on-year growth of 27.25 per cent in its business in 18 years.

"Containing cost and driving the net interest income has resulted in Rs 451 crore net profit in the September quarter," Nair said.

Gross non-performing assets (NPAs) declined to 0.61 per cent of gross advances during the September quarter, from 1.01 per cent in the corresponding quarter of FY26.

Its capital adequacy ratio stood at 32.39 per cent, one of the highest in the industry, while return on equity was at 16.92 per cent by the end of September. ​ The bank plans to open 60 new branches, including 20 outside Tamil Nadu, Nair added.

Shares of Tamilnad Mercantile Bank closed at Rs 804.60 apiece, up 0.47 per cent, on the BSE.

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