Tamilnad Mercantile Bank Posts 42.09% Net Profit Jump To ₹451 Crore In Q2 FY27, Total Business Grows 27.25%

Mumbai: Tamilnad Mercantile Bank announced on Monday its unaudited financial results for the quarter and half-year ended September 30, 2026, showcasing significant growth across key financial metrics.

Profitability and Income

The bank's net interest income (NII) rose by 35.17 per cent YoY to ₹807 crore. Operating profit for Q2 FY27 increased by 41.80 per cent YoY to ₹642 crore. Net profit reached its highest ever, with earnings per share (EPS) at ₹28.49 for the quarter.

Balance Sheet and Deposits

Total deposits for Q2 FY27 stood at ₹69,546 crore, an increase of 25.49 per cent YoY. Current Account Savings Account (CASA) deposits grew by 16.26 per cent YoY to ₹17,629 crore. The bank's balance sheet size expanded by 24.49 per cent YoY to ₹85,951.42 crore.

Advances and Asset Quality

Gross advances grew by 29.32 per cent YoY to ₹60,691 crore. Retail, Agriculture, and MSME (RAM) advances, a key focus area, increased by 28.96 per cent YoY to ₹57,247 crore, constituting 94.33 per cent of gross advances. Gross Non-Performing Assets (GNPA) declined by 40 basis points (bps) YoY to 0.61 per cent, while Net Non-Performing Assets (NNPA) decreased by 12 bps YoY to 0.14 per cent. The provision coverage ratio (PCR) with technical write-off improved by 131 bps YoY to 96.61 per cent.

Key Ratios

Return on Equity (ROE) stood at 16.92 per cent, up by 315 bps YoY from 13.77 per cent in Q2 FY26. Return on Assets (ROA) increased by 33 bps YoY to 2.18 per cent. The bank's Net Interest Margin (NIM) improved by 36 bps YoY to 4.19 per cent. Cost to Income ratio reduced by 553 bps YoY to 38.28 per cent. Capital Adequacy Ratio (CRAR) was 32.39 per cent, with Tier-1 Capital (CET-1) at 31.36 per cent.

Branch Network and Digital Footprint

Tamilnad Mercantile Bank's branch network expanded to 631 as of September 30, 2026, with nine new branches opened in the first half of FY27. Digital channels accounted for 97.48 per cent of transactions during Q2 FY27, an increase from 97.40 per cent in Q1 FY27.

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