The bank opened 26 new branches in FY25 and launched several initiatives including a revamped Digital Banking Platform and a Global NRI Center to enhance service delivery and operational efficiency.
FinTech BizNews Service
Mumbai, April 23, 2025: The Board of Directors of Tamilnad Mercantile Bank Ltd. approved the Audited Financial Results of the Quarter and Financial Year End 31st March, 2025 in their meeting held today.
Key Highlights of the results:
· Tamilnad Mercantile Bank reported a 10.35% YoY growth in Net Profit, reaching Rs1,183 crore in FY2025, driven by robust performance in core lending and deposit businesses.
· The bank opened 26 new branches in FY25 and launched several initiatives including a revamped Digital Banking Platform and a Global NRI Center to enhance service delivery and operational efficiency.
· Gross NPA and Net NPA ratios improved significantly to 1.25% and 0.36%, respectively, while the CRAR rose to 32.71%, underscoring strong asset quality and capital adequacy.
Announcing the Q4FY25 audited financial results, Mr. Salee S Nair, MD & CEO of Tamilnad Mercantile Bank, said, “We have achieved YoY growth of 10.35% in Net Profit in FY2025, driven by continued growth in our core lending and deposit businesses. We remain committed to our strategic priorities of expanding our reach and enhancing customer experience. In this year, we have opened 26 new branches across key markets, further strengthening our distribution network. We have also entered into a several strategic partnerships for a digital transformation of the bank and increasing operational efficiency to enhance customer growth. We believe that these strategic initiatives, coupled with our focus on responsible lending and cautious risk management practices, will pave the way for sustainable and profitable growth in the years to come.”
The Bank continues to post strong performance in all fundamental parameters.
Bank’s Performance Highlights (Year on Year)
⮚ Net profit surged to Rs1,183 crore from Rs1,072 crore, Y-o-Y growth of 10.35%.
⮚ Operating Profit improved to Rs1,746 crore from Rs1,482 crore, registering a growth of 17.81%
⮚ Interest Income improved to Rs5,291 crore from Rs4,848 crore Y-o-Y growth of 9.14%
⮚ Total income increased to Rs6,142 crore from Rs5,493 crore, Y-o-Y growth of 11.82%
⮚ Total Business increased to Rs98,055 crore from Rs89,485 crore, Y-o-Y growth of 9.58%
⮚ The RAM segment increased to 93% from 91%, up 200 bps Y-o-Y
⮚ Gross NPA decreased to 1.25% from 1.44%, improved by 19 bps.
⮚ Net NPA decreased to 0.36% from 0.85%, improved by 49 bps.
⮚ Stressed Assets ratio decreased to 2.01% from 2.70%,down by 69bps Y-o-Y
⮚ Total SMA to Gross Advances declined to 2.55% from 3.97%,down 142bps Y-o-Y
⮚ Book value per share increased to Rs569 from Rs500, Y-o-Y growth of 13.80%
⮚ The CRAR % increased to 32.71% from 29.37%, up 334 bps Y-o-Y
⮚ ROA stood at 1.88%
Rs In Crore
Parameters | March 2024 | March 2025 | Growth – YoY % |
Total Deposits | 49,515 | 53,689 | 8.43% |
Total Advances | 39,970 | 44,366 | 11.00% |
Total Business | 89,485 | 98,055 | 9.58% |
Retail, Agri & MSME (RAM) | 36,484 | 41,297 | 13.19% |
Net worth | 7,921 | 9,009 | 13.74% |
Book Value (Rs) | 500 | 569 | 13.80% |
Gross NPA % | 1.44% | 1.25% | 19 bps |
Net NPA % | 0.85% | 0.36% | 49 bps |
EPS (Rs) | 67.70 | 74.68 | 10.31% |
CRAR | 29.37% | 32.71% | 334 bps |
ROA | 1.84 | 1.88 | 4 bps |
ROE | 14.44 | 13.97 | -47 bps |
⮚ The Bank’s deposits increased to Rs53,689 crores (PY Rs49,515 crores)
⮚ The advance level of the Bank increased to Rs44,366 crores with a growth rate of 11% on YOY basis.
⮚ Non Interest Income improved to Rs851 crore from Rs645 crore, an increase of
31.94%.
⮚ Net Interest Income improved to Rs2301 crore from Rs2151 crore, an increase of
6.97%.
⮚ The Bank’s Net worth increased to Rs 9,009 crores (PY Rs7,921 crores) with an absolute rise of Rs1,088 crores registering a growth rate of 13.74%.
New Branch Opening
The Bank has opened 26 New Branches during the year FY 24-25
New Initiatives / Developments:
The bank has significantly expanded its service offerings with the following recent launches:
Transaction Banking Group (TBG): Strategically growing current accounts by focusing on key segments (Current, TASC, GBG, Institutional) and digital expansion, prioritizing customer satisfaction and resource efficiency.
Global NRI Center (GNC): Capitalizing on the substantial NRI remittance market to increase deposits and market share by delivering exceptional, personalized service and cultivating long-term, high-value CASA relationships.
Elite Service Group: Dedicated to maximizing engagement with High Net Worth customers, increasing product penetration, and fostering strong, trusting relationships through dedicated support and effective problem resolution.
Digital Banking Revamp (DBR): Currently developing a new, advanced Internet Banking Platform (DEH by Edgeverve/Infosys) to enhance digital capabilities.
Dividend Recommendation
⮚ Board of Directors of the bank has recommended the payment of final dividend of Rs11/- per equity share of the face value of Rs10 each (110%) for the financial year 2024-25, subject to the approval of the shareholders at the ensuing AGM of the Bank.
The Bank remains committed to delivering the value to its stakeholders.
