Business · India Bureau
Tamilnad Mercantile Bank Q2 profit surges 42% to ₹451 crore
The private sector lender posted strong earnings growth in the September quarter, driven by robust interest income expansion and improved asset quality metrics.
LSN India ·
Tamilnad Mercantile Bank reported a 42 per cent year-on-year increase in net profit to ₹451 crore for the second quarter of FY2026-27, significantly outpacing its performance from the same period last year when it logged ₹317 crore.
The Chennai-based lender's interest income grew 29 per cent during the quarter ended September 30, climbing to ₹1,820 crore from ₹1,413 crore in Q2 of the previous financial year. The expansion in interest income underscores the bank's ability to leverage its lending portfolio amid favourable market conditions.
Asset quality metrics showed considerable improvement, with gross non-performing assets declining to 0.61 per cent of gross advances in the September quarter, compared to 1.01 per cent in the year-ago period. The contraction in NPAs reflects the bank's strengthened credit risk management and borrower quality.
On the stock market, shares of Tamilnad Mercantile Bank traded at ₹786.30 on the BSE, down 1.82 per cent from the previous close, despite the positive earnings announcement.