Tamilnad Mercantile Bank Ltd [NSE: TMB] announced its Q1 FY26 results on Thursday, 24th July 2025. The bank reported a modest increase in net profit supported by sharply lower provisions, even as operating profit declined compared to the previous year.
For Q1 FY26, the bank’s net profit stood at ₹305 crore, marking a 6% year-on-year increase compared to ₹287 crore in Q1 FY25. However, operating profit dropped by 12% YoY, falling to ₹412 crore from ₹469 crore in the same period last year.
Key Financial Results for Tamilnad Mercantile Bank Ltd Q1 FY26:
| Particulars | Q1 FY26 | Q4 FY25 | Q1 FY25 | YoY Growth (%) | QoQ Growth (%) |
| Total Income (Cr) | 1,617.5 | 1,542.1 | 1,514.9 | 6.8 | 4.9 |
| Net Profit (Cr) | 305.0 | 291.9 | 287.3 | 6.2 | 4.5 |
| EPS (₹) | 19.3 | 18.4 | 18.1 | 6.6 | 4.9 |
Important Updates from Tamilnad Mercantile Bank’s Latest Financial Results
Net Profit Growth Driven by Lower Provisions
Tamilnad Mercantile Bank posted a 6% YoY rise in net profit to ₹305 crore, supported by sharply lower provisions and contingencies, which dropped to ₹8.3 crore from ₹85.4 crore in Q1 FY25.
Decline in Operating Profit
Operating profit fell 12% YoY, declining to ₹412 crore compared to ₹469 crore in Q1 FY25.
Marginal Increase in Net Interest Income
The bank’s net interest income (NII) rose slightly to ₹579 crore, up by ₹13 crore from ₹566 crore in Q1 FY25.
Other Income Slightly Lower
Other income stood at ₹231 crore, compared to ₹234 crore in the same quarter last year.
Improved Asset Quality
Gross non-performing assets (GNPA) ratio improved to 1.22%, down from 1.44% a year ago, reflecting stronger asset quality.
Looking Ahead
Tamilnad Mercantile Bank aims to maintain its steady growth while ensuring prudent credit risk management and strong asset quality.
Investors can keep track of the Tamilnad Mercantile Bank share price to follow the bank’s stock performance.
With better asset quality and stable earnings, Tamilnad Mercantile Bank Ltd continues to be a significant player in the banking sector stocks category.
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