TMB net profit rises 35% to ₹411.51 crore, NPAs improve
Q1 FY27 profit jumps to **₹411.51 cr** from **₹304.89 cr**; gross NPAs narrow to **0.69%** from **1.22%**, net NPAs to **0.17%**. ROA improves to **2.14%**.
— 4 earlier stories on Tamilnad Mercantile Bank Ltd. →What's new
- Net profit rose 35% to ₹411.51 crore in Q1 FY27.
- Gross NPAs improved to 0.69% from 1.22% a year ago.
- Advances grew 27.5% to ₹57,040 crore; deposits up 20%.
Why this matters
TMB continues to show strong asset quality improvement and double-digit growth. With a capital adequacy of 32.33% and ROA at 2.14%, the bank is well-capitalised and profitable. However, the results are largely in line with expectations, and the market has likely priced in the momentum.
What we're watching
- Update on retail and MSME lending traction in future quarters.
- Any commentary on margin trends in upcoming analyst calls.
- Provision coverage ratio at 75.36% — potential for further improvement.
The full read
Tamilnad Mercantile Bank delivered a 35% year-on-year jump in net profit to ₹411.51 crore in Q1 FY27, driven by strong advances growth of 27.5% to ₹57,040 crore. Asset quality improved sharply: gross NPAs fell to 0.69% from 1.22%, and net NPAs to 0.17%. Return on assets rose to 2.14%. The bank's capital adequacy ratio stood at 32.33%, far above the minimum requirement, and the provision coverage ratio was 75.36%. The numbers extend the bank's improving trend, but the market had largely anticipated this trajectory after last quarter's strong show. The filing makes the data official; the real test will be commentary on margin sustainability and loan book quality in the upcoming analyst calls.
Questions answered
- What drove the 35% profit growth?
- Strong advances growth of 27.5% and improved asset quality, with NPAs falling, boosted net profit.
- How much did advances grow?
- Advances grew 27.5% to ₹57,040 crore, while deposits rose 20%.
- What is the capital adequacy ratio?
- CAR stood at 32.33%, well above regulatory requirements.
- Is this result better than expected?
- The result is strong but largely in line with the improving trajectory; it's a routine quarterly filing.
- What was the net profit in the previous quarter?
- In Q4 FY26 (March 2026 quarter), net profit was ₹374 crore.
Tamilnad Mercantile Bank Ltd.
Latest quarter · Mar 2026
Returns & growth
Story so far
All notes on TMB →- 27 Jul 2026 · 1:56 PM IST TMB net profit rises 35% to ₹411.51 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 jumps 35% to ₹411.5 crore, NPAs improve
- 26d ago TMB advances jump 27% YoY, total business crosses ₹1,21,715 cr