Tamilnad Mercantile Bank Q2 Net Profit 35% Higher, Total Business Hits ₹1.30 Lakh Crore

Tamilnad Mercantile Bank’s shares slipped 0.99% to ₹862.65 on the NSE after the Q2 filing. The move came against a backdrop of a pan‑India sell‑off triggered by a fresh RBI policy statement.

Profit jumped to ₹411.5 crore from ₹305 crore a year earlier, a 35% increase that outpaced the consensus of ₹385 crore reported by analysts on Bloomberg and Moneycontrol.

Net interest income climbed 32% to ₹765.4 crore from ₹579 crore, while total advances surged 29.4% to ₹60,715 crore and deposits grew 25.5% to ₹69,546 crore. CASA volumes rose 16.26% to ₹15,163 crore, reflecting a healthy mix of low‑cost deposits. The bank’s gross NPA fell to 0.69% from 0.73% sequentially, and net NPA dropped to 0.17% from 0.18%. Provisions swelled to ₹54 crore, up from ₹19 crore in March, as the bank tightened credit risk buffers.

While Tamilnad Mercantile Bank did not issue new guidance, its earnings release emphasized that the improving asset quality and healthy deposit base should underpin continued profitability in the coming quarters. Investors will be watching the June 2027 filing for any updates on cost‑control measures.