Tamilnad Mercantile Bank Ltd (TMB), a venerable institution with a rich history spanning 102 years, continues to uphold its legacy of profitability and strong fundamentals. On August 2, 2024, the Board of Directors of Tamilnad Mercantile Bank Ltd approved the unaudited financial results for the quarter ended June 30, 2024. The results, announced by Independent Director Shri. C. Chiranjeeviraj, demonstrate the bank’s consistent strong performance across key financial metrics.
For the quarter, TMB reported an operating profit of ₹469 crore, a significant increase from ₹380 crore year-over-year (YoY). Net profit surged to ₹287 crore from ₹261 crore YoY. The Net Interest Margin (NIM) rose to 4.12 per cent from 4.00 per cent YoY, while interest income improved to ₹1,281 crore from ₹1,156 crore YoY. Non-interest income also saw a boost, reaching ₹234 crore from ₹167 crore YoY. The bank’s total income increased to ₹1,515 crore from ₹1,323 crore YoY, and the Capital to Risk (Weighted) Assets Ratio (CRAR) climbed to 29.21 per cent from 26.57 per cent YoY.
The book value of TMB’s shares rose to ₹520 from ₹454 YoY, and total business expanded to ₹90,041 crore from ₹84,300 crore YoY. Current Account Savings Account (CASA) deposits increased to ₹13,789 crore from ₹13,101 crore YoY, with the Retail, Agriculture, and MSME (RAM) segment rising to 92 per cent from 90 per cent YoY. Additionally, the bank reduced its Special Mention Accounts (SMA) to Gross Advances ratio to 4.98 per cent from 7.16 per cent YoY, and its stressed assets ratio decreased to 2.55 per cent from 3.21 per cent YoY.
TMB’s deposits grew to ₹49,188 crore from ₹47,008 crore in the previous quarter (PY), and advances increased to ₹40,853 crore, marking a 10 per cent growth YoY. The bank’s net profit for Q1 FY25 stood at ₹287 crore, up from ₹261 crore in Q1 FY24, representing a 10 per cent growth YoY. Net interest income also rose by 10 per cent, reaching ₹567 crore for Q1 FY25 compared to ₹514 crore for Q1 FY24. Return on Assets (RoA) was at 1.88 per cent, while Return on Equity (RoE) stood at 14.22 per cent for the reporting quarter, slightly adjusted from 1.85 per cent and 14.80 per cent respectively in Q1 FY24. TMB’s net worth increased to ₹8,244 crore, an absolute rise of ₹1,054 crore, reflecting a 15 per cent growth.
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In Q1 FY25, TMB launched several new initiatives, including the opening of 10 new branches—6 in Tamil Nadu and 4 in other states. The bank introduced an online customer portal for foreign exchange operations and launched the “TMB Apartment Savings Bank Account” tailored for high-net-worth individuals in apartment communities. Additionally, TMB rolled out an online Demat account opening platform for customers.
