Tamilnad Mercantile Bank reports Q3 net profit at ₹300.24 cr up 6%

Chennai, Jan 29 (PTI) Private sector Tamilnad Mercantile Bank Ltd has reported a net profit of ₹300.24 crore for the October-December 2024 quarter, up by 6 per cent, driven by continued growth in core lending and deposit businesses, a top official said on Wednesday.

The Tuticorin-based bank had registered a net profit of ₹284.23 crore during the corresponding quarter of last financial year. The net profit for the nine month period ending December 31, 2024 went up to ₹890.71 crore, from ₹818.97 crore registered in the year ago period.

The total income during the quarter under review went up to ₹1,519.94 crore from ₹1,387.13 crore registered in the year ago period. For the nine month period ending December 31, 2024 the total income grew to ₹4,599.69 crore as against ₹4,075.24 crore registered in the corresponding period of last financial year.

"We have achieved year-on-year growth of 6 per cent in net profit in Q3FY25, driven by continued growth in our core lending and deposit businesses. We remain committed to our strategic priorities of expanding our reach and enhancing customer experience." said the bank's MD and CEO Salee S Nair.

"In this quarter (October-December 2024) we have opened 5 new branches across key markets, further strengthening our distribution network." he said in a statement.

The total business of the bank as on December 2024 grew to ₹94,042 crore up by 10.40 per cent from ₹85,185 crore recorded in the same period of last financial year.

Gross NPA as on December 31, 2024 was at 1.32 per cent as against 1.69 per cent registered as on December 31, 2023 while net NPA stood at 0.41 per cent as on December 31, 2024 as compared to 0.98 per cent recorded as on December 31, 2023.

The RAM (Retail, Agriculture and MSME) segment has increased to 92 per cent for Q3FY25 as against 91 per cent for Q3FY24, the bank said.

"We have entered into a few strategic partnerships with companies like Oracle, Deloitte and Bajaj Broking to leverage their expertise in various areas, including digital transformation and increasing operational efficiency to enhance customer growth.

We believe that these strategic initiatives, coupled with our focus on responsible lending and cautious risk management practices, will pave the way for sustainable and profitable growth in the years to come," Nair added.