Tamilnad Mercantile Bank (TMB), has reported a 5 per cent increase in its net profit at ₹274 crore for the September 2023 quarter when compared with ₹262 crore in the year-ago quarter due to lower operating profit.

The Thoothukudi (Tamil Nadu)-headquartered old private sector bank operating profit was lower by 6 per cent at ₹365 crore in the September 2023 quarter when compared with ₹389 crore in the year-ago quarter.

However, interest income grew 21 per cent to ₹1,209 crore in Q2 of this fiscal (₹997 crore in the year-ago quarter), while non-interest income rose 8 per cent to ₹156 crore (₹145 crore). Total expenditure was higher at ₹1,000 crore (₹752 crore).

Total slippages were higher at ₹309 crore (₹74 crore in Q2FY23), while cash recovery was higher at ₹69 crore (₹309 46 crore).

Gross NPA

As of September 30, 2023, the Gross NPA as a percentage of total advances stood at the same level of the year-ago period - 1.7 per cent, down from 1.56 per cent in Q1 of this fiscal. Net NPA stood at 0.99 per cent, up from 0.86 per cent in the year-ago period and 0.66 per cent in the preceding quarter. Provision Coverage Ratio of the Bank decreased to 86.42 per cent (88.58 per cent).

Total advances stood at ₹37,778 crore when compared with ₹34,877 crore, while total deposits grew to ₹47,314 crore from ₹43,137. At Rs.37,778 crore, RAM (retail, agriculture, and MSME) sector accounted for 91 per cent of gross advances in Q2 of this fiscal.

Return on assets stood at 1.89 per cent in Q2FY24 as against 2.03 per cent a year ago. Return on equity dropped to 15.01 per cent from 17.65 per cent. The net worth of TMB increased to ₹7,384 crore from ₹6,461 crore.