Chennai: Private sector Tamilnad Mercantile Bank (TMB) on Monday posted a 28% growth in net profit at Rs 374 crore in the quarter ended March 31, 2026, against Rs 292 crore in the corresponding quarter last year. It was on the back of multiple factors primarily driven by interest income aided by record growth in advances and lower.For the full year FY26, the bank’s net profit was higher at Rs 1,338 crore as against Rs 1,183 crore in FY25. Its total advances increased by 20.3% at Rs 53,379 crore in FY26 (Rs 44,366 crore in FY25). Deposits grew by 14.9% on YoY basis at Rs 61,712 crore (Rs 53,689 crore). The total business grew by 17% at Rs 1,15,091 crore in FY26. The gross NPA decreased to 0.73% (FY26) from 1.25% (FY25), an improvement by 52 bps, Net NPA was down to 0.18% from 0.36% during the same period. “The bank aims to grow its advances by 20%, deposits and total business by 16% and 18%, respectively YoY in the current fiscal of FY27 over FY26,” TMB MD and CEO Salee S Nair told reporters through a virtual press conference.The Tuticorin-headquartered bank’s Retail, Agriculture and MSME (RAM) segment comprised about 95% of the total advances in FY26, while 5% accounted for corporate segment. “When we re-enter the corporate book, its (corporate) share in our overall advance book will not be more than 10%,” he added. Asked about the impact on gold loans from the volatile gold prices, he said, “We are quite aware that there is a commodity risk attached to the gold loan portfolio. If there is a fall in gold price to the extent of 25% our portfolio can withstand.”
