TMB net profit jumps 35% to ₹411.5 crore, NPAs improve
Gross NPA ratio falls to 0.69% from 1.22%, net NPA drops to 0.17%. Capital adequacy stands at 32.33%.
— 4 earlier stories on Tamilnad Mercantile Bank Ltd. →What's new
- Net profit rose 35% to ₹411.5 crore from ₹304.9 crore a year ago.
- Gross NPA ratio improved to 0.69% from 1.22%; net NPA at 0.17%.
- Total deposits grew 20% YoY to ₹64,409 crore, advances up 28% to ₹57,040 crore.
Why this matters
TMB continues its trajectory of double-digit earnings growth and asset-quality improvement. The bank's provision coverage ratio of 75.36% and CAR of 32.33% leave ample room for business expansion. The result was widely anticipated given prior guidance.
What we're watching
- Whether loan growth sustains at 28% in a competitive lending environment.
- Any commentary on margin trends when management speaks next.
- NPA trajectory – gross NPA below 0.69% is a multi-year low.
The full read
Tamilnad Mercantile Bank keeps the momentum going. Net profit rose 35% to ₹411.5 crore for the June 2026 quarter, with asset quality hitting multi-year bests: gross NPA at 0.69% and net NPA at 0.17%. The loan book grew 28% YoY to ₹57,040 crore, while deposits grew 20%. Return on assets touched 2.14% and the capital adequacy ratio stayed high at 32.33%. The bank's provision coverage ratio of 75.36% adds further cushion. These numbers are strong, but they were widely anticipated given the bank's consistent trajectory. The next test is whether TMB can sustain this growth as competition intensifies in the southern banking market.
Questions answered
- What drove the 35% profit jump?
- Healthy net interest income and other income fuelled the rise, along with a sharp decline in provisions as asset quality improved.
- How has asset quality changed?
- Gross NPA improved to 0.69% from 1.22%, and net NPA to 0.17% from 0.40% a year ago. The provision coverage ratio stood at 75.36%.
- Is the capital adequacy ratio comfortable?
- Yes, at 32.33% it is well above regulatory minimum, giving the bank headroom to grow advances without raising fresh capital.
- Was this result a surprise for the market?
- Not really. The bank had been signalling consistent improvement, and the numbers fell within the expected range. The market typically absorbs such results quickly.
Tamilnad Mercantile Bank Ltd.
Latest quarter · Mar 2026
Returns & growth
Story so far
All notes on TMB →- 27 Jul 2026 · 1:47 PM IST TMB net profit jumps 35% to ₹411.5 crore, NPAs improve
- today TMB Q1 profit up 35% to ₹411 cr, NPA drops to 0.69%
- today TMB posts record ₹412 cr quarterly profit, lifts FY27 guidance
- today TMB net profit rises 35% to ₹411.51 crore, NPAs improve
- 26d ago TMB advances jump 27% YoY, total business crosses ₹1,21,715 cr