Tamilnad Mercantile Bank reports healthy Q1 growth; advances outpace deposits

Tamilnad Mercantile Bank reports healthy Q1 growth; advances outpace deposits


Tamilnad Mercantile Bank Ltd. reported a healthy business update for the quarter ended June 30, 2026, with strong growth in both deposits and advances, driven by sustained lending momentum.

According to the bank’s provisional business figures, total business rose 23% year-on-year to ₹1.22 lakh crore as of June 30, 2026, from ₹98,923 crore a year earlier. On a sequential basis, total business grew 5.8% from ₹1.15 lakh crore at the end of March.

Gross advances increased 27% year-on-year to ₹57,306 crore, while total deposits grew 19.7% to ₹64,409 crore. Compared with the March quarter, advances rose 7.4%, while deposits were up 4.4%. Meanwhile, the bank’s CASA deposits stood at ₹16,852 crore, up 16.9% from a year ago but down 3% sequentially. The figures are provisional and subject to a limited review by the bank’s statutory central auditors.

The latest business update builds on the bank’s strong performance in the March quarter. Tamilnad Mercantile Bank had reported a 28% year-on-year rise in net profit to ₹374 crore, supported by healthy growth in core income.

Net interest income (NII) increased 24% to ₹704.4 crore, reflecting continued traction in lending operations. Asset quality also improved further during the quarter, with the gross non-performing asset (NPA) ratio declining to 0.73% from 0.91% sequentially, while the net NPA ratio eased to 0.18% from 0.20%, indicating stable credit quality and lower stress levels.

Shares of Tamilnad Mercantile Bank Ltd. ended 0.27% lower at ₹731.50 on the NSE on Wednesday, ahead of the business update.



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