Net interest income (NII), a key measure of a bank’s core earnings, rose marginally by 0.2% YoY to ₹567.9 crore from ₹567 crore. While loan growth remained stable, margins were largely flat amid a high-interest rate environment.
The private sector lender also saw a sequential improvement in asset quality. Gross non-performing assets (GNPA) fell to 1.25% from 1.32% in the previous quarter, while net NPA dropped to 0.35% from 0.41% quarter-on-quarter (QoQ), reflecting stronger loan recoveries and prudent underwriting practices.
Tamilnad Mercantile Bank, which has a strong presence in southern India and caters primarily to retail and MSME customers, has been focusing on digital transformation and expanding its customer base. The bank is also reportedly working to boost its capital adequacy and improve efficiencies across branches.
Shares of Tamilnad Mercantile Bank Ltd ended at ₹441.55, down by ₹6.45, or 1.44%, on the BSE
