The bank’s CASA has increased to ₹16,852 crore
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Tamilnad Mercantile Bank (TMB) on Monday reported a 35 per cent year-on-year growth in net profit for the quarter ended June 2026 (Q4FY26) at ₹412 crore, against ₹305 crore in the same quarter last year.Net interest income (NII) grew 32 per cent y-o-y to ₹765 crore (₹580 crore). Net interest margin (NIM) improved to 4.3 per cent from 3.8 per cent in the year-ago period. At ₹64,409 crore, deposits grew 19.7 per cent y-o-y in Q1FY27 and at ₹57,306 crore advances saw a robust 27 per cent y-o-y growth. Total business stood at ₹1,21,715 crore, a rise of 23 per cent.Advances growth came largely from a surge in retail loans (36 per cent y-o-y) and also healthy growth in agri loans (30 per cent y-o-y). At ₹23,399 crore, agri loans now make up almost 40 per cent of total advances of the bank. The bank’s CASA has increased to ₹16,852 crore, with a growth rate of 17 per cent on y-o-y basis. NIM was down 46 basis points from June 2025 to 4.29 per cent in the year-ago period.Salee S Nair, Managing Director and CEO, Tamilnad Mercantile Bank, said the first quarter of FY27 has brought a positive start to the financial year, and the growth delivered during the quarter is broad-based, supported by healthy business momentum, improved operating performance and continued focus on maintaining a strong and resilient balance sheet.FCNR (B) depositsWith regard to FCNR (B) deposits, the bank said that such deposits are up 11 per cent from their FY26 base (sequentially). “The bank has raised $10 million [in total mobilisation under the RBI’s special forex swap facility] so far, and our aspiration is to touch about $50 million [till the window ends],” Nair told mediapersons during an interaction. Not having a foreign presence has been a minor issue on this front, and TMB is looking at addressing it in the future by evaluating liaison offices across territories, Nair added.The Thoothukudi-headquartered bank, which largely serves the trader community, also saw its asset quality improve despite the macroeconomic factors. Gross NPAs as of June 30, 2026, at 0.73 per cent, were down 53 basis points. Net NPAs stood at 0.17 per cent.Nair said they have not seen any stress due to macroeconomic factors, and evaluate it constantly. “The indirect impact is there, but we have been watching this closely. We have not seen any impact of that so far in the stress levels,” he said.TMB’s export credit is around 3.53 per cent of its total MSME and corporate credit, and the West Asian countries’ exposure is around ₹32.14 crore, which is 0.06 per cent of the total advances. TMB is also continuing on its digital push and plans to invest around ₹280 crore towards information technology in FY27. This will go towards cyber security, mobile banking, Internet banking, credit process automation and a trade finance platform, among others.The bank opened six branches in Q1 FY27, and now has a footprint of 628 branches across the country. The shares of TMB ended the trading day on Monday at ₹911.00, up over 13.24 per cent on the BSE.Published on July 27, 2026
