Unaudited Financial Results of Tamilnad Mercantile Bank Ltd for the Quarter Ended December 31, 2025

Tamilnad Mercantile Bank Ltd (TMB) one of the renowned Old Private Sector Banks, having its headquarters in Thoothukudi has a long-cherished history of 104 years of eventful existence with strong fundamentals and an enviable track record of continuous profit making in the industry.

TMB is having Pan India presence with 614 branches (as on 31.01.2026) and 12 Regional Offices across 17 states and 4 Union Territories and serves more than 5.3 million satisfied customers.   The Board of Directors of Tamilnad Mercantile Bank Ltd has approved the Unaudited Financial Results of the Quarter Ended December 31,2025 in their meeting held at Thoothukudi on 04.02.2026. Shri. Salee S Nair, Managing Director and CEO of the bank declared the results. Executive Director, Chief Financial Officer, Executive Vice Presidents and other senior officials of the Bank were also present in the event.

Shri. Salee S Nair, MD & CEO, Tamilnad Mercantile Bank Ltd 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. 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.”

Total business increased by 14.28% year on year, reaching ₹1,07,470 crores compared to ₹94,042 crores last year. Deposits grew by 12.53%, amounting to ₹56,707 crores, up from ₹50,392 crores. The Bank's CASA rose by 14.93% to ₹15,847 crores, while advances rose by 16.30% to ₹50,763 crores.

Net profit rose by 14% to ₹342 crore from ₹300 crore, and operating profit jumped by 15% to ₹468 crore from ₹408 crore. The net NPA decreased to 0.20% from 0.41%, and gross NPA fell to 0.91% from 1.32%. PCR without technical write-offs increased to 78.35% from 69.07%, and the total SMA to gross advances reduced to 2.24% from 3.77%. The CRAR percentage improved to 30.08% from 29.35%. The book value of shares rose to ₹617.22 from ₹550.38. For Q3FY26, net interest income was ₹646.14 crore, a growth of 13.28% from ₹570.39 crore in Q3FY25. Return on Assets was 1.97%, and Return on Equity stood at 14.22%. Net worth increased to ₹9,774 crores from ₹8,715 crores, showing a growth rate of 12.15%. The RAM segment grew to 93.98% from 92.39%.

The Bank opened 12 new branches in Q3FY26. Several strategic initiatives were taken to improve customer experience and operational efficiency, including an Online Approval System for workflow automation, a new AI-driven call center for customer service, and the implementation of a new Loan Origination and Loan Management System. Dormant accounts can now be activated via Video-based Customer Identification Process. Revisions in internet banking limits and online EPF payment collections were also introduced to enhance user experience and security. These initiatives show the Bank's focus on innovation and customer-centric growth while aiming to provide value to stakeholders.