Tamilnad Mercantile Bank (TMB) reported a 28 per cent YoY growth in net profit for the quarter ended March 2026 (Q4FY26) at Rs 374 crore and annual net profit of FY26 stood at Rs 1338 crore, up 13 per cent YoY.

The growth in profitability was driven by the bank achieving its highest advances and deposits growth in the past 39 quarters (~4 years).

At ₹61,712 Cr, deposits grew 15 per cent YoY in FY26, and at ₹53,379 Cr, advances saw a robust 20 per cent YoY growth. For the full fiscal, total business grew at 17.4 per cent YoY to end at Rs 1,15,091 crore. Net Interest Income for FY26 grew 9.8 per cent and stood at Rs 2527 crore.

The quarterly profit also rose despite the front-loading impact of ₹49.8 crores provision by the Thoothukudi-based bank for Performance-based Incentive for FY26 in the quarter ended March.

The bank’s CASA has increased to ₹17,365 crore with a growth rate of 22.4 per cent on YoY basis. Net Interest Margin(NIM) was slightly down to 3.98 per cent as of March 2026 from 4.07 per cent in the year-ago period.

For FY27, the bank expects total business to grow at about 18 per cent with an estimated 20 per cent growth in advances and 16 per cent deposits growth.

The asset quality also improved with Gross NPA as of March 31, 2026 at 0.73 per cent, the lowest in the past 40 quarters. Net NPA stood at 0.18 per cent.

Salee S Nair, MD & CEO, Tamilnad Mercantile Bank, told mediapersons that the bank delivered a FY26 that was markedly different from FY25. “We managed to arrest the decline in CASA, and also achieved a business growth of 9.35 per cent over the last 10 years CAGR,” he said. The credit costs are under control and we are also in the process of ramping up our credit monitoring centres to further accelerate advances and particularly corporate credit, he added.

The MD and CEO also put tariff issues behind them, and said the impact of the West Asia crisis was negligible on the company.

TMB’s export credit is around 3.6 per cent of its total MSME and Corporate credit, and the West Asian countries exposure is around ₹50.95 crore which is 0.10 per cent of total advances.

Advances growth came largely from a surge in gold loans, and also healthy growth in MSME loans. At Rs 24,790 crore, gold loans now make up almost 46 per cent of total advances of the bank, with the bank noting significant measures taken to ensure it is not impacted by gold price volatility.

The bank opened 44 new branches during FY26.

The Board of Directors recommended the payment of Final Dividend of ₹12.50 per equity share of the face value ₹10 each (125%) for FY26, subject to the approval of the shareholders.

The shares of TMB ended the trading day at Rs 702.35 up over 9.7 per cent on the BSE.

Published on April 27, 2026