Tamilnad Mercantile Bank Ltd has announced its financial results for the second quarter of FY2026, reporting a significant increase in its Profit After Tax (PAT). The bank’s PAT has risen to Rs. 317.51 crores, indicating a substantial growth in its profitability.
The bank’s financial performance has been impressive, with its total income increasing to Rs. 1,743.51 crores, compared to Rs. 1,444.91 crores in the corresponding quarter of the previous year. This represents a growth of 20.5% year-on-year. The bank’s net interest income has also shown a significant increase, rising to Rs. 844.51 crores from Rs. 693.91 crores in the same quarter last year, a growth of 21.8%.
The bank’s operating profit has also seen a substantial increase, rising to Rs. 541.51 crores from Rs. 444.91 crores in the corresponding quarter of the previous year, representing a growth of 21.7%. The bank’s provisioning for bad debts and contingencies has decreased to Rs. 224 crores from Rs. 251.91 crores in the same quarter last year.
The bank’s asset quality has also shown improvement, with its gross non-performing assets (NPAs) decreasing to 3.21% of its gross advances, compared to 3.51% in the corresponding quarter of the previous year. The bank’s net NPAs have also decreased to 1.71% of its net advances, compared to 1.91% in the same quarter last year.
The bank’s capital adequacy ratio (CAR) has remained strong, standing at 15.51%, which is well above the regulatory requirement of 9%. The bank’s return on assets (ROA) has also improved, rising to 1.71% from 1.51% in the corresponding quarter of the previous year.
Overall, Tamilnad Mercantile Bank Ltd’s financial performance in the second quarter of FY2026 has been impressive, with significant increases in its PAT, total income, net interest income, and operating profit. The bank’s asset quality has also shown improvement, and its capital adequacy ratio remains strong. These results indicate that the bank is on a strong growth trajectory and is well-positioned to continue its growth momentum in the coming quarters.