S. Krishnan, (Left) MD & CEO, Tamilnad Mercantile Bank Ltd, addressing to Media to announce the banks Q1 FY24 Financial Results, in Thoothukudi on July 24, 2023.
| Photo Credit: N. Rajesh
Tamilnad Mercantile Bank Ltd., (TMB) reported standalone net profit for the June quarter rose 12% to ₹261 crore due to improvement in asset quality and in interest income.
Interest income for the quarter improved to ₹1,156 crore from ₹1,002 crore and non-interest income by ₹27 crore to ₹167 crore, the private sector lender said in a statement.
Net income contracted to ₹514 crore from ₹524 crore. Net interest margin declined to 4% from 4.54%.
The Gross non-performing asset (NPA) as a percentage to total advances declined to 1.56% from 1.69% and net NPA stood at 0.66% against 0.93%. Provision Coverage Ratio increased to 90.49% from 88.08%.
“Going forward, we expect the bank to post 12-15% in deposits and advances. We also expect to keep the gross and net non-performing assets below 2% and 1% respectively,” MD & CEO S. Krishnan told the media.
The bank’s deposits increased by 8.73% to ₹47,008 crore, while advances by 10.26% to ₹37,292 crore.
Retail, Agri and MSME (RAM) segment increased to 90% from 88%, in actual terms, it grew by 12.86% to ₹33,574 crore.
The bank had a capital adequacy ratio of 26.57%.
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