Synopsis: Tamilnad Mercantile Bank (TMB), a prominent private sector bank headquartered in Tuticorin, has reported a 6% increase in its net profit for the third quarter of the financial year 2024-25, reaching ₹300.24 crore compared to ₹284.23 crore in the same quarter of the previous year. This growth is attributed to robust performance in core lending and deposit activities.
Financial Performance Highlights
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Net Interest Income (NII): The bank's NII stood at ₹570 crore, marking a 6% rise from ₹537 crore in the corresponding quarter of the previous year.
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Operating Profit: Operating profit increased by 10% to ₹408 crore, up from ₹370 crore in the same quarter last year.
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Non-Interest Income: There was a 20% growth in non-interest income, reaching ₹189 crore.
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Advances and Deposits: Advances grew by 13.7% year-on-year to ₹43,650 crore, while deposits rose by 7.7% to ₹50,392 crore.
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Asset Quality: The gross non-performing assets (NPA) ratio improved to 1.32% from 1.69% a year ago, and the net NPA decreased to 0.41% from 0.98%. The provision coverage ratio increased to 69% from 41.93%.
Conclusion
Tamilnad Mercantile Bank's consistent growth in net profit, along with improvements in asset quality and operational efficiency, underscores its strong position in the banking sector.
The bank's strategic focus on responsible lending and prudent risk management continues to drive its financial performance.
Disclaimer: The information provided is based on publicly available financial reports and news articles. Investors are advised to conduct their own research or consult financial advisors before making investment decisions.
