Tamilnad Mercantile Bank’s (TMB) net profit rose by 37.15 per cent year on year (YoY) to Rs 262.3 crore in the quarter ended September (Q2FY23), on the back of an improvement in its net interest income (NII).
The private sector lender had posted a net profit of Rs 190.74 crore in (Q2FY22), according to a filing with the BSE.
The bank’s stock was trading 1.77 per cent higher at Rs 496.3 per share on BSE on Thursday.
TMB’s NII was up 15.6 per cent YoY in Q2FY23 at Rs 508.16 crore. The lender’s non-interest income dipped to Rs 144.8 crore in Q2FY23 from Rs 150.9 crore in Q2FY22.
The lender’s asset quality profile improved with gross non-performing assets (GNPAs) at 1.7 per cent till September 2022, compared with 3.31 per cent in the year-ago period. Net NPAs dipped to 0.86 per cent from 1.82 per cent.
The provision coverage ratio improved to 88.58 per cent for the quarter under review from 80.5 per cent a year ago.
The bank’s loan book grew 10.38 per cent YoY, lower than the banking system’s pace of loan book expansion (16.4 cent YoY) in September 2022. Outstanding advances stood at Rs 34,876 crore as of September 2022.
The deposits grew by 5.15 per cent YoY to Rs 43,136 crore at end of September 2022 This was lower than the banking sector deposit growth of 9.2 per cent.
The bank’s total capital adequacy ratio (CAR) stood at 24.58. per cent in September 2022, up from 18.87 per cent a year ago.