Tamilnad Mercantile Bank reported strong growth in its total business in the second quarter, with deposits and advances both recording healthy year-on-year growth.
Total business rose 27.3% year-on-year and 7% sequentially to ₹1.30 lakh crore, compared with ₹1.02 lakh crore a year ago.
Total deposits increased 25.5% year-on-year and 8% quarter-on-quarter to ₹69,546 crore, from ₹55,421 crore in the year-ago period. Total advances grew 29.4% year-on-year and 6% sequentially to ₹60,715 crore, compared with ₹46,930 crore a year earlier.
CASA stood at ₹15,163 crore, up 16.26% year-on-year and 4.6% sequentially, according to the lender’s quarterly update.
The lender had also reported a strong set of earnings in the June quarter, with asset quality improving sequentially.
Net profit came in at ₹411.5 crore, up 35% from ₹305 crore a year earlier.
Net interest income (NII), or core income earned by the lender, increased 32% to ₹765.4 crore from ₹579 crore in the previous fiscal.
The bank’s gross non-performing assets (NPA) improved to 0.69% from 0.73% sequentially, while net NPA declined to 0.17% from 0.18%.
The increase in Tamilnad Mercantile Bank’s profitability came despite a significant rise in provisions, which stood at ₹54 crore at the end of the June quarter, compared with ₹19 crore in March and ₹8 crore in the previous quarter.
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Following the announcement, shares of Tamilnad Mercantile Bank were trading at ₹862.65 on the NSE, down 0.99% or ₹8.65, amid a broad-based sell-off in the market.