Net NPA has decreased to 0.26% from 0.46%, improved by 20 bps.
FinTech BizNews Service
Mumbai, October 27, 2025: The Board of Directors of Tamilnad Mercantile Bank Ltd has approved the Unaudited Financial Results of the Quarter Ended / Half Year Ended September 30,2025 in their meeting held at Thoothukudi on 27.10.2025. Shri. Salee S Nair, Managing Director and CEO of the bank declared the results. Executive Director, Chief Financial Officer, Executive Vice Presidents and other senior officials of the Bank were also present in the event.
The Bank continues to post strong performance in all fundamental parameters.
Bank’s Performance Highlights (Year on Year)
Total Business grew by 11.40%, highest year on year growth since listing
Deposits grew by 12.32 % on YoY basis, deposits has increased to Rs 55421
crores (PY Rs49342 crores)
The Bank’s CASA has increased to Rs15163 crores (PY Rs13873 crores)
The advance level of the Bank has increased to Rs46930 crores with a growth rate
of 10.34% on YOY basis.
Lowest GNPA in the last 10 years @1.01%
Net profit has surged to Rs318 crore from Rs303 crore, up by 4.95%.
Net NPA has decreased to 0.26% from 0.46%, improved by 20 bps.
PCR (without technical written off) has increased to 74.36% from 66.40%
Total SMA to Gross Advances has reduced to 2.67% from 4.16%, came down by
149 bps.
The CRAR % has increased to 30.96% from 29.59 %, improved by 137 bps.
Book value of share has increased to Rs596.38 from Rs532.37
The Net Interest Income is at Rs597 Crores for the quarter Q2FY26 as against
Rs596 Crore for Q2FY25 registering a growth rate of 0.17%.
The Bank’s Networth has increased to Rs9,444 crores (PY Rs8,430 crores) with
an absolute rise of Rs1,014 crores registering a growth rate of 12.03%.
The RAM segment has increased to 94.59% for Q2FY26 as against 92.34%
for Q2FY25.
New Branch Opening
The Bank opened 9 New Branches during Q2FY26
Today (27.10.2025), the Bank inaugurated three new branches at Tenali –
Andhra Pradesh, Mangalagiri – Andhra Pradesh, and Vizhinjam - Kerala.
The opening of Vizhinjam branch in Kerala marks a significant milestone as
the Bank’s 600 th branch.
New Initiatives / Developments:
During the quarter, the Bank has undertaken several strategic initiatives and
technology-driven developments aimed at enhancing customer experience,
strengthening operational efficiency, and expanding service offerings. Key initiatives
include:
Introduction of TMB Rewards program for RuPay Debit Card variants,
enhancing customer engagement and loyalty.
Launch of Oracle Fusion CX Platform for Customer Relationship
Management (CRM) and Oracle Vendor Management Systems (VMS) for Expense Management, implemented through Deloitte Touche Tohmatsu
Limited.
Introduction of UPI facility on RuPay Credit Cards, enabling seamless and
convenient digital payments.
Empanelment of M/s. Canara Robeco Asset Management Company for
Mutual Fund Distribution, further diversifying investment offerings for
customers.
Launch of fund transfer facility through the Business Process
Management (BPM) Application, improving internal efficiency and
transaction processing.
Introduction of Port Taxes/Expenses Payment facility related to
Kamarajar Port Limited, Chennai, through Internet Banking, facilitating
easy payments for port-related transactions.
Corporate Agency tie-up with M/s. Bajaj Allianz General Insurance Co.
Ltd., expanding the Bank’s insurance distribution network.
Launch of Customs Duty collection facility through Internet Banking,
offering a convenient digital platform for customers to make government-
related payments.
Establishment of a new state-of-the-art Call Centre facility integrated with
AI calling capabilities, enhancing customer support and responsiveness.
Strategic partnership with M/s. Wegofin Digital Solutions Pvt. Ltd. under
the Bank as Payment Aggregator (BAPA) model, strengthening the Bank’s
digital payment ecosystem.
Implementation of an end-to-end automated reconciliation process for all
digital transaction settlements, improving accuracy and operational control.
These initiatives demonstrate the Bank’s continued commitment to innovation, digital
transformation, and customer-centric growth.
Shri. Salee S Nair, MD & CEO, Tamilnad Mercantile Bank Ltd said, “We have achieved
the highest ever quarterly Net Profit in Q2FY26, 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 quarter, we have
opened 9 new branches, across key markets, further strengthening our distribution
network. We have also entered into several strategic partnerships for the digital
transformation of the bank and increasing operational efficiency to enhance customer
service. 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 remains committed to delivering value to its stakeholders.
