TAMILNAD MERCA BANK LTD

Management reported that Tamilnad Mercantile Bank Limited (TMB) achieved a strong performance in Q1 FY27, with a total business growth of 23%, significantly exceeding the historical 10-year CAGR of 8.82%. This growth marked the highest in 14 years and was supported by a 32.01% increase in net interest income and a record net profit of INR 412 crores, up 34.97% year-on-year. The bank maintained a capital adequacy ratio of 32.33% and reported a decline in gross and net NPA percentages. Management highlighted a focus on resource mobilization, with deposits up 19.71% and advances up 27.01%. The bank also fully provided for non-fund based facilities for the first time. Additionally, management noted an increase in mutual fund and foreign portfolio investor interest in TMB. The earnings call concluded with management expressing confidence in sustaining growth and addressing challenges in the CASA segment.

Management emphasized strong growth and record financial performance.