Tamilnad Mercantile Bank Q1 FY27 Results: Net Profit Crosses ₹400 Crore For The First Time

Tamilnad Mercantile Bank delivered its best quarterly result ever, hitting a net profit of over ₹400 crore for the very first time. The bank disclosed a profit of ₹411.51 crore for the quarter ended June 2026, which was a jump from ₹304.89 crore in the same period of the previous year.

The Tamilnad Mercantile Bank Q1 FY27 results were supported by healthy growth in core income, steady loan expansion and another improvement in asset quality. Even though the bank made higher provisions during the quarter, earnings remained strong and profitability touched a new high.

Key Highlights

• Revenue / Net Interest Income (NII): ₹765.08 crore (up 32% YoY)
• Net Profit: ₹411.51 crore (up 35% YoY)
• Gross NPA: 0.69% (vs 1.22% in Q1 FY26)
• Net NPA: 0.17% (vs 0.33% in Q1 FY26)
• Gross Advances: ₹57,306 crore (up 27% YoY)
• Deposits: ₹64,409 crore (up 19.7% YoY)
• Net worth: ₹10,562 crore (up 13.2% YoY)
• CASA Deposits: ₹16,852 crore (up 16.9% YoY)

How Did The Business Perform?

The bank reported broad-based growth during the June quarter. Net interest income rose 32% year-on-year to ₹765.08 crore, reflecting the continued expansion of its lending book.

Business volumes also remained healthy. Gross advances increased 27% over the year-ago period to ₹57,306 crore, while deposits grew 19.7% to ₹64,409 crore. This helped the bank's total net worth climb to ₹10,562 crore, representing a 13.2% increase from a year earlier.

Asset quality improved further during the quarter. Gross NPA declined to 0.69% from 1.22% in the June quarter last year, while net NPA eased to 0.17% from 0.33%.

The bank also increased its provisioning. Provisions stood at ₹54 crore, higher than ₹19 crore in the previous quarter and ₹8 crore in the same period last year. Despite the higher provisioning, earnings reached a record level.

CASA deposits came in at ₹16,852 crore. The figure was 16.9% higher than a year ago, although it slipped 3% sequentially.

Management Commentary

Commenting on the results, Salee S. Nair, Managing Director and Chief Executive Officer of Tamilnad Mercantile Bank, said the lender had achieved a significant milestone during the quarter.

"For the first time, we have crossed the ₹400 crore net profit mark. This has also come at an acceptable credit cost, which continues to be under control. Our asset quality has also improved."

Nair also shared an update on the bank's foreign currency deposit mobilisation.

"From an FY26 base, our FCNR(B) deposits are up 11.03%. We stand at around ₹825 crore currently in FCNR(B) deposits. Specifically, under the special forex swap facility window, this bank has raised $10 million so far, and our aspiration is to touch about $50 million."

Market Reaction

Prior to the earnings discourse, Tamilnad Mercantile Bank Ltd.’s share price closed at ₹893.65 on the National Stock Exchange. The price climbed more than 11% during Monday's trading session to touch a record high of ₹917.

The rally has added to the stock's strong performance this year.

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