Tamilnad Mercantile Bank Reports Strong Q3 FY 2024-25 Performance, Net Profit Up 6% YoY

Thoothukudi, India – January 29, 2025​

Tamilnad Mercantile Bank Limited (NSE: TMB, BSE: 543596) has announced its unaudited financial results for the third quarter (Q3) and nine months (9M) ended December 31, 2024. The bank reported robust profitability growth, asset quality improvements, and strong business expansion.

Key Financial Highlights (Standalone Results)​

Quarterly Performance (Q3 FY 2024-25 vs Q3 FY 2023-24)​

• Operating Profit: ₹408 crore, up 10% YoY from ₹370 crore.
• Net Profit: ₹300 crore, up 6% YoY from ₹284 crore.
• Non-Interest Income: ₹189 crore, up 20% YoY from ₹158 crore.
• Gross NPA: 1.32%, down 37 bps from 1.69% last year.
• Net NPA: 0.41%, down 57 bps from 0.98% last year.
• Provision Coverage Ratio (PCR): 69.07%, up from 41.93% last year.
• Capital Adequacy Ratio (CRAR): 29.35%, improving by 340 bps from 25.95%.

Nine-Month Performance (9M FY 2024-25 vs 9M FY 2023-24)​

• Total Business Growth: 10% YoY.
• Book Value Per Share: ₹550.38, up from ₹484.25 last year.
• Total Deposits: ₹50,392 crore, up 7.7% YoY from ₹46,799 crore.
• Total Advances: ₹43,650 crore, up 13.7% YoY from ₹38,386 crore.
• CASA Ratio: 27.36%, slightly lower than 29.63% last year.

Tamilnad Mercantile Bank continues its strong growth trajectory with stable asset quality and profitability.

Business Expansion & Growth Strategy​

✔ Network Expansion: Opened five new branches in Q3 FY25.
✔ New Digital Initiatives: Pilot launch of fintech partnerships and digital banking solutions.
✔ Strong Loan Growth: 13.7% YoY increase in gross advances, led by agriculture and MSME sectors.
✔ Stable Deposit Base: 7.7% YoY growth in total deposits, with higher retail term deposits.

Segmental Performance & Key Ratios​

SegmentQ3 FY25 (₹ crore)Q3 FY24 (₹ crore)% Change YoY
Total Business 94,042 85,970 +10%
Total Deposits 50,392 46,799 +7.7%
Total Advances 43,650 38,386 +13.7%
Net Interest Income (NII) 570 537 +6.2%
Net Profit 300 284 +6.0%
The bank’s strong balance sheet and stable NIMs ensure sustainable earnings growth.

Asset Quality & NPA Management​

• Gross NPA: 1.32%, improving from 1.69% in Q3 FY24.
• Net NPA: 0.41%, down from 0.98% last year.
• Provision Coverage Ratio (PCR) (excluding technical write-off): 69.07%, a sharp increase from 41.93% YoY.
• Total SMA (Special Mention Accounts) Ratio: 3.77%, improving by 157 bps from last year.

✔ Significant reduction in stressed assets, improving financial stability.

Capital Strength & Shareholder Value​

• Net Worth: ₹8,715 crore, up from ₹7,668 crore last year.
• Book Value Per Share: ₹550.38, up from ₹484.25 the previous year.
• Earnings Per Share (EPS): ₹19.15, compared to ₹17.95 in Q3 FY24.
• Return on Assets (ROA): 1.89%, compared to 1.93% last year.
• Return on Equity (ROE): 14.44%, reflecting strong profitability.

Strategic Partnerships & Digital Banking Initiatives​

✔ Fintech Collaborations: Expanding partnerships for digital lending & payment solutions.
✔ New Insurance Tie-Ups: Enhancing fee income through bancassurance partnerships.
✔ Technology Upgrades: Strengthening cybersecurity & digital banking infrastructure.

Market Outlook & Future Growth Plans​

Tamilnad Mercantile Bank is well-positioned for sustainable growth, driven by:
✔ Expansion in retail & MSME lending.
✔ Steady growth in deposits & CASA base.
✔ Improved digital banking & fintech integrations.
✔ Enhanced cost efficiency & NPA management.

Conclusion​

Tamilnad Mercantile Bank has delivered strong Q3 FY 2024-25 results, supported by higher profitability, improving asset quality, and business expansion. With a solid capital base, strong earnings growth, and digital transformation initiatives, the bank is poised for continued success in the coming quarters.