Operating profit saw a robust increase of 27.4%, reaching ₹465 crore from ₹365 crore in Q2 FY2024. The bank’s net interest income (NII) also improved, climbing 11.9% to ₹596 crore, reflecting efficient interest management and lending growth.
The bank’s asset quality saw marked improvement, with Gross NPA down to 1.37% from 1.70% and Net NPA reduced to 0.46% from 0.99% year-on-year, signalling stronger credit quality and risk management.
Non-interest income rose significantly by 45.5% to ₹227 crore, driven by expanded fee-based activities. Additionally, the net worth of the bank grew by 14.2%, reaching ₹8,430 crore.
Tamilnad Mercantile Bank continued its nationwide expansion, adding 15 new branches in H1 FY2025. The RAM (Retail, Agri, and MSME) segment grew by 14.6%, reinforcing the bank’s focus on key lending sectors.
Management noted that recent digital initiatives, such as the launch of GST payment facilities, are set to enhance customer experience and drive growth.
Shares of Tamilnad Mercantile Bank closed at ₹432.10, up by 1.69% on the BSE. The results were announced post-market hours.