TMB posted a net profit of Rs. 373.65 crore in the fourth quarter of 2025-2026, when compared to Rs. 291.90 crore in the same period last year.
Net interest income increased 24.04 per cent to Rs 704.45 crore in the fourth quarter of financial year 2026, from Rs. 567.92 crore in the year-ago period.
TMB said it made a provision of Rs 49.80 crore in the fourth quarter for the performance for FY2026.
The bank’s gross non-performing asset (NPA) declined to 0.73 per cent in the fourth quarter from 1.25 per cent in the comparable period last year. Net NPA declined to 0.18 per cent from 0.36 per cent.
TMB’s Current Account Savings Account (CASA)- increased 22.35 per cent in the fourth quarter to Rs 17,365 crore from Rs. 14,193 crore in the comparable period last year. Overall deposits increase 14.94 per cent to Rs 61,712 crore.
Gross Advances increased 20.32 per cent to Rs 53,379 crore in the fourth quarter from Rs 44,366 crore in the comparable period.
“During the fourth quarter, we had recorded highest growth in deposits and advances in 10 years. We have also been able to arrest the decline in CASA and reverse the trend,” Salee S Nair, MD & CEO, Tamilnad Mercantile Bank Ltd said in a post earnings media interaction.
He also said the impact from West Asia conflict on its portfolio is insignificant.
MSME accounts for 29.10 per cent of its loan portfolio and its export credit is 3.64 per cent of total MSME and Corporates book.
West Asian countries exposure is Rs 50.95 crore which is 0.10 per cent of the bank’s total advances, while USA bound Export Credit is Rs 71.37 crore which is 0.13 per cent of total advances.
Nair said the bank has seen a revival in MSME credit, with a growth of 15 per cent in the fourth quarter.
He also said the bank’s Corporate book stands at a miniscule 5.33 per cent and at some point the bank will look to take it to 10 per cent.
Nair also said he anticipates no further repo rate cuts by Reserve Bank of India and also an increase in cost of deposits by 5-7 basis points in FY2027.
“The bank will be to defend its Net Interest Margin at 3.98 per cent in FY 2027,” he added.
Gold loans account for 46 per cent of the bank’s loan book.
Asked about the impact from falling gold prices on the gold loan portfolio, Nair pointed out that the bank’s Loan to Value is 53.25 per cent and the bank’s portfolio can withstand a fall in gold loan prices of up to 25 per cent.
In FY2026, the bank recorded a 14.94 per cent growth in total deposits and 20.32 per cent growth in total advances, while total business grew 17.37 per cent.
Nair said TMB is expecting an 18 per cent growth in total business, 20 per cent growth in advances and a 15-16 per cent growth in deposits in FY2027.
