TMB Q4 net jumps 28 pc on core income growth

The Tamilnad Mercantile Bank TMB on Monday reported a 28 per cent rise in its net profit to Rs 373.65 crore in the last quarter of FY2025-26, helped by an expansion in the net interest margin. Deposits of the bank increased 14.94 per cent year-on-year to Rs 61,712 crore in the January-March quarter, from Rs 53,689 crore in a similar quarter a year ago.

The Tamilnad Mercantile Bank (TMB) on Monday reported a 28 per cent rise in its net profit to Rs 373.65 crore in the last quarter of FY2025-26, helped by an expansion in the net interest margin. The bank had reported a net profit of Rs 291.90 crore in the same quarter of the last fiscal. ''For the first time, we are seeing the core business, the core business of deposits, deposit taking and lending, is driving the profit. This has resulted in the net interest income going up 24 per cent,'' Salee S Nair, managing director and chief executive officer of the bank, said. The core net interest income rose 24.04 per cent year-on-year to Rs 704.45 crore in Q4FY26, from Rs 567.92 crore in a similar quarter a year ago. In the reporting quarter, net interest margins (NIM) of the bank improved to 4.18 per cent, from 4.04 per cent in a quarter ago period, and 3.91 per cent in a year ago period, while the advances grew over 20 per cent. The bank is targeting to maintain the advances growth in FY27 as well, Nair said. Deposits of the bank increased 14.94 per cent year-on-year to Rs 61,712 crore in the January-March quarter, from Rs 53,689 crore in a similar quarter a year ago. Nair said the bank is targeting to accelerate deposit growth by a percentage point more to 16 per cent. On the asset quality front, the bank has seen a sharp improvement in the asset quality, with gross non-performing assets ratio at 0.73 per cent in Q4FY26, as compared to 0.91 per cent in Q3FY26, and 1.25 per cent in the year-ago period. The bank sees limited direct risk from the ongoing West Asia tensions given its relatively small exposure to the region. ''Our exposure to West Asia is about Rs 51 crores, out of our total export credit of Rs 670 crores. So from that perspective, we are not really worried on it,'' Nair said. He expects the government to come out with a large package to substantially moderate the impact of the West Asian crisis, and in particular, the energy crisis.