Tamilnad Mercantile Bank Q2 net profit up 5% to ₹318 crore; asset quality improves

Private sector lender Tamilnad Mercantile Bank Ltd on Monday (October 27) reported a 4.7% year-on-year rise in net profit at ₹318 crore for the second quarter, compared to ₹303 crore in the same period

last year.

Net interest income (NII) for Q2 stood marginally higher at ₹597.1 crore, up 0.2% from ₹596 crore in the corresponding quarter of the previous year. On the asset quality front, the bank showed improvement, with gross non-performing assets (NPA) at 1.01% compared to 1.22% in the previous quarter. Net NPA also declined to 0.26% from 0.33% sequentially.

Tamilnad Mercantile Bank reported that its total business growth for Q2 FY26 was 11.40%, which is approximately 3.5% higher than its 9-year CAGR and about 2% higher than the previous year. The bank stated that this marks its highest year-on-year growth since listing.

Also Read: Tamilnad Mercantile Bank Q1 Results | Net profit up 6% at ₹305 cr; asset quality better

Deposit growth stood at 12.32%. Advances growth was reported at 9.30%, while CASA growth came in at 10.34%, with the CASA share increasing by 58 basis points quarter-on-quarter, reversing the previous trend. The bank noted that growth is being driven by the lowest Gross NPA ratio in the last 10 years, standing at 1.01% as of Q2 FY26.

The results came after the close of the market hours. Shares of Tamilnad Mercantile Bank Ltd ended at ₹456.00, up by ₹5.00, or 1.11%, on the BSE.

Also Read:Tamilnad Mercantile Bank Q2 Update: Advances, deposits grow from last year, sequentially