Tamilnad Mercantile Bank Ltd., (TMB) reported standalone net profit for the June quarter rose 10% to ₹287 crore due to improvement in asset quality and interest income.
Interest income improved to ₹1,281 crore from ₹1,156 crore and non-interest income by ₹67 crore to ₹234 crore, the private sector lender said in a statement.
Net interest income grew by 10% to ₹567 crore. Net interest margin increased to 4.12% from 4%.
The Gross non-performing asset (NPA) as a percentage to total advances declined by 12 bps to 1.44% and net NPA contracted by 1 bps to 0.65%. Provision Coverage Ratio increased to 90.27% from 88.08%.
TMB total business rose 6.81% to ₹90,041 crore, of which advances by 9.55% to ₹40,853 crore.
The bank’s deposits increased by 4.64% to ₹49,118 crore, CASA grew marginally by ₹688 crore from ₹13,789.
Retail, Agri and MSME segment increased to 92% from 90%, in actual terms, it grew by 12.03% to ₹37,614 crore.
The bank had a capital adequacy ratio increased to 29.21% from 26.57%.
During the quarter, TMB reported seven non-credit fraud cases amounting to ₹57.04 lakh. After recovering ₹24.57 lakh, the bank has made 100% provision for the remaining amount.
The Bank has provided an amount of ₹98 crore upto June 2024 towards wage arrears on an adhoc basis pending negotiations with Employees/Officers’ Association.
