Tamilnad Mercantile Bank Ltd (TMB), reported its highest-ever quarterly net profit of ₹284 Crores for the third quarter of the fiscal year 2024.
The bank’s financial performance for the third quarter showcased several key highlights. The net worth of TMB increased to ₹7668 Crore from ₹6741 Crore Year-on-Year (Y-o-Y), while the book value of shares rose to ₹484 from ₹426 YoY.
The total income witnessed substantial growth, reaching ₹1387 Crore from ₹1173 Crore YoY, with the net profit registering an increase to ₹284 Crore from ₹280 Crore YoY. Furthermore, the RAM segment advances rose to 91 per cent from 89 per cent YoY, and the gross NPA decreased to 1.69 per cent from 1.70 per cent YoY. The total SMA to gross advances also saw a notable reduction to 5.34 per cent from 8.41 per cent YoY.
TMB’s total business for Q3 FY24 stood at ₹85,185 Crores, reflecting a commendable growth rate of 8.87 per cent. As of December 31, 2023, the bank’s deposit and advance portfolio were reported at ₹46,799 Crore and ₹38,386 Crore, respectively.
In terms of credit allocation, the bank continued its emphasis on priority sectors, such as Agriculture, MSME, Education, and Housing, constituting 75 per cent of its Adjusted Net Bank Credit (ANBC), surpassing the regulatory requirement of 40 per cent. Notably, advances to the Agriculture sector constituted ₹13,338 Crore, exceeding the regulatory requirement of 18 per cent.
The year-on-year performance of TMB showcased positive trends, including an increase in CASA to ₹13,865 Crore, a rise in deposits to ₹46,799 Crore, and growth in advances to ₹38,386 Crore with a rate of 10.30 per cent.
The net profit for Q3 FY 2024 stood at ₹284 Crore, marking an improvement from ₹280 Crore in Q3 FY 2023. The bank’s net worth also exhibited robust growth, reaching ₹7668 Crore from ₹6741 Crore, indicating a growth rate of 13.75 per cent.
Additionally, during Q3 FY24, TMB undertook new initiatives, opening six branches and launching innovative products such as the “TMB Rera Current Account” for the real estate sector and introducing new loan products like “TMB Home Elite” and “TMB Minilap.” These initiatives are aimed at further strengthening the bank’s offerings and market presence in line with its commitment to customer satisfaction and sustained growth.
