Tamilnad Mercantile Bank reports strong growth in Q2 FY24 with net profit rising to Rs 274cr

Tamilnad Mercantile Bank Ltd (TMB), recognized for its enduring history and consistent profitability in the banking sector, reported robust financial results for Q2 FY24. The Bank, headquartered in Thoothukudi, Tamil Nadu, and with a strong national presence across India, including 543 branches and 12 regional offices, has demonstrated significant financial growth.

Net Worth and Net Profit Mark Noticeable Growth

The bank’s net worth observed a substantial increase, reaching ₹7,384 crore, up from ₹6,461 crore Year-over-Year (Y-o-Y). Furthermore, the book value of a share surged to ₹466 from ₹408 Y-o-Y. A crucial highlight of the quarter was the rise in net profit, which escalated to ₹274 crore from ₹262 crore Y-o-Y, marking a positive trend in the bank’s profitability.

Bank’s Business, Deposits, and Advances Show Positive Trajectory

TMB’s total business as of the second quarter of FY24 stood at ₹85,092 crores, showing a growth rate of 9.07%. The bank’s deposits increased to ₹47,314 crores, while the advance level also witnessed an uptick to ₹37,778 crores, growing by 8.32% on a Y-o-Y basis.

Financial Indicators and New Initiatives

The bank’s Net Interest Income (NII) also saw an increase, amounting to ₹533 Crores for Q2 FY24, registering a growth rate of 4.72%. Return on Asset and Return on Equity were reported at 1.89% and 15.01%, respectively, for the reporting quarter. New initiatives launched in Q2 FY24 include the opening of 5 new branches and the establishment of MSME Loan processing Hubs in key cities to focus on the emerging MSME market. The bank has also partnered with JOCATA Financial Advisory & Technology for enhancing credit automation processes.

These strategic steps, combined with a consistent focus on growth and expansion, underline TMB’s commitment to remaining a prominent and robust player in the Indian banking sector, aiming to cater to a wider market and enhance customer satisfaction.