Tamilnad Mercantile Bank Q4 profit up 11% to ₹253 cr

Private sector lender Tamilnad Mercantile Bank (TMB) on Monday posted a 11.45 per cent rise in its net profit for the fourth quarter ended March 2023 at ₹253 crore, helped by decline in bad loans.

In a regulatory filing, the bank had earned a net profit of ₹227 crore for the year-ago period. Total income during the quarter rose to ₹1,204 crore, from ₹1,200 crore a year ago.

The board of directors have recommended a dividend of 100 per cent of which 50 per cent has already been paid in March 2023 as interim dividend, it said.

Interest income grew to ₹1,070 crore during the quarter, as against ₹986 crore in the same quarter a year ago.

Gross non-performing assets (NPAs) were reduced to 1.39 per cent of gross advances as of March 31, 2023 from 1.69 per cent by the end of March 2022.

Net NPAs also came down to 0.62 per cent from 0.95 per cent.

The fall in bad loans ratio helped cut the provisions towards NPAs and contingencies for Q4FY23 to ₹57 crore from ₹146 crore a year ago.