Private sector lender Tamilnad Mercantile Bank (TMB) has reported net profit of ₹342 crore for Q3FY26 as compared with ₹300 crore in the corresponding quarter of last fiscal, registering an increase of 14%, on the back of asset quality improvement and execution excellence across the organisation. Total income of the bank rose by 9.6% to ₹ 1, 665 crore from ₹ 1,519 crore.
Net NPA has decreased to 0.20% from 0.41%, improved by 21 bps while gross NPA has come down to 0.91% from 1.32%, improved by 41 bps. PCR (without technical written off) has increased to 78.35% from 69.07%.
The net interest income (NII) has increased to ₹646.14 crore for Q3FY26 as against ₹570.39 crore for Q3FY25 registering a growth of 13.28%. Net Interest Margin (NIM) has increased to 4.04% from 4.00%, improved by 4 bps.
Salee S Nair, MD & CEO, TMB, said, “Our Q3 FY26 performance reinforces the progress we are making in a year focused on building long term capability and scalable growth. The bank delivered healthy growth in advances and deposits, with resilience in profitability and continued strength in asset quality, reflecting disciplined execution across the organisation. MSME lending remains a core growth driver for us. During the quarter, we saw improving momentum in MSME credit, supported by stronger engagement in trade linked and manufacturing clusters.”
Total business of TMB grew by 14.28% YoY to ₹1,07,470 crore (PY ₹94,042 crore). Deposits grew by 12.53% on YoY basis and increased to ₹56,707 crore (PY ₹50,392 crore). The bank’s CASA has increased to ₹15,847 crore (PY ₹13,788 crore) with a growth rate of 14.94% on YoY basis. The advance level of the bank has increased to ₹50,763 crore with a growth of 16.30% on YoY basis.
Nair said developments around the US India trade engagement are constructive for export oriented MSMEs, particularly in sectors such as textiles, engineering and electronics, where Tamil Nadu has a strong presence. “ We are seeing early signs of improved demand for working capital, trade finance and forex solutions from these enterprises. Our ongoing technology transformation is beginning to translate into operational benefits. The integration of advanced digital lending platforms and enterprise systems, including Oracle based solutions, is improving turnaround times, risk assessment and productivity, while enhancing the customer experience. Looking ahead, our focus remains on sustainable credit growth, deepening MSME relationships, improving operating leverage and deploying capital efficiently as we move from a transformation phase into a stronger growth cycle in FY27,” he said.