Tamilnad Mercantile Bank Q1 Results: Net profit up 11.5% at Rs 261.2 crore

Tamilnad Mercantile Bank on July 24 reported a net profit of Rs 261.2 crore for the first quarter of FY24.

Tamilnad Mercantile Bank on July 24 reported a net profit of Rs 261.2 crore for the first quarter of FY24. It had reported a net profit of Rs 234 crore during the same period, a year ago.

Moreover, the private sector lender's asset quality improved in Q1FY24 with gross non-performing asset (GNPA) declined to 1.56 percent from 1.69 percent, a year ago. Net non-performing assets (NNPA) dropped  to 0.66 percent from 0.93 percent in the June quarter of FY23.

At 12:50 pm, shares of Tamilnad Mercantile Bank were trading at Rs 439.15 a share, up 2.46 percent from the previous close, whereas the benchmark equity index Sensex were 2.12 percent up at 440.00.

Thoothukudi-based bank advances to Priority sector have increased to Rs 27,805 Crores (PY Rs 24,839 Crores) with a growth rate of 12 percent. The Bank’s Advances to Agriculture sector stood at Rs 12,231 Crores. The Advances to Agriculture Sector constitute 32.80 percent of total advances, above the regulatory requirement of 18 percent.

Credit to MSME sector has increased to Rs 13,311 Crores (PY Rs 12,588 Crores).

The bank has opened 6 branches during Q1FY24. Moreover, MSME Loan processing HUB has been started at Chennai, Madurai, Coimbatore and Thoothukudi and Jewel Loan in the Lend Perfect – End to End process flow of Jewel Loan automation resulted in significant reduction in process time.