Tamilnad Mercantile Bank stock soars on positive Q1 results

Year-to-date, Tamilnad Mercantile Bank stock has fallen around 6 percent, underperforming benchmark Nifty's return of around 14 percent during this period.

Shares of Tamilnad Mercantile Bank (TMB) bucked the market trend to trade around 6 percent higher on August 5 as investors cheered the lender's fiscal first-quarter earnings.

TMB recorded a 10 percent rise in its net profit at Rs 287.29 crore on account of rise in net interest income (NII). This marks the bank's highest net profit.

TMB's net interest income (NII), the difference between the interest income a bank earns and the interest it pays, increased by 8 percent YoY to Rs 174.8 crore in Q1FY25.

At 10:24 am, TMB shares were trading 4.6 percent higher at Rs 472 on the National Stock Exchange (NSE). Year-to-date, the stock has fallen around 6 percent, underperforming benchmark Nifty's return of around 14 percent during this period.

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Meanwhile, the bank has sent four names to the Reserve Bank of India (RBI) for the selection of managing director (MD), chief executive officer (CEO), and executive director (ED) post.

The fresh list of candidates was sent to RBI after it rejected the earlier list of candidates proposed by the bank, people aware of the development told Moneycontrol.

Few names in the list for MD and CEO positions are ex-officials of state-run banks such as State Bank of India (SBI) and Indian Bank, the source said adding that for the executive director position, names may be shortlisted from a few candidates with experience in the private banking space.

Earlier in April, the RBI had rejected the list of candidates sent by TMB, saying the candidates are not found suitable for the post. Also, the central bank asked the bank to submit a fresh list of candidates with suitable experience.

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Last year on September 29, S. Krishnan resigned from the post of MD & CEO days after the bank mistakenly credited Rs 9,000 crore to a cab driver in Chennai.

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