| Metric | Value (₹ Cr) | Q3 FY26 | Q4 FY25 |
|---|---|---|---|
| Revenue | 1.6K | 5.5% | 15.6% |
| Total Income | 1.8K | 7.6% | 16.2% |
| Expenditure | 1.3K | 6.1% | 11.6% |
| PBT | 503.52 | 7.9% | 30.2% |
| Net Profit | 373.65 | 9.4% | 28.0% |
| OPM | 33.69% | 1.82pp | 3.58pp |
| NPM | 20.85% | 0.34pp | 1.92pp |
| EPS | 23.60 | 9.4% | 28.0% |
TMB Q4 FY26 Net Profit up 13.10% to
27 Apr 2026 · 27 Apr, 9:25 pm
Summary
Tamilnad Mercantile Bank Ltd delivered a robust performance for the Financial Year 2026, with net profit surging by 13.10% year-on-year to ₹1337.55 crore. Total business grew by 17.37% to ₹1,15,091 crore, driven by a 20.32% increase in advances and 14.94% growth in deposits. The bank also achieved significant improvement in asset quality, with Net NPA dropping to 0.18%. MD & CEO Shri. Salee S Nair highlighted Q4 FY26 as a defining quarter, marked by highest-ever quarterly profitability and strong resilience from the MSME franchise, reinforcing confidence in sustaining growth momentum while maintaining prudent risk management for FY27.
Key Highlights
- 1
Tamilnad Mercantile Bank Ltd achieved a total business growth of 17.37% year-on-year, reaching ₹1,15,091 crore for the Financial Year 2026.
- 2
Net profit for FY26 surged by 13.10% year-on-year to ₹1337.55 crore, demonstrating strong profitability.
- 3
The Bank's advances grew by 20.32% year-on-year to ₹53,379 crore, complementing a 14.94% rise in deposits to ₹61,712 crore for FY26.
- 4
Asset quality showed significant improvement with Net NPA decreasing by 18 basis points to 0.18%, and Gross NPA reducing by 52 basis points to 0.73%.
- 5
Net Interest Margin (NIM) for Q4 FY26 increased to 4.18%, improving by 27 basis points quarter-on-quarter.
- 6
Return on Asset stood at 1.93% and Return on Equity at 13.99% for FY26, reflecting efficient financial management.
- 7
The bank expanded its physical presence by opening 44 new branches during FY26.
Management Comments
Salee S Nair
Our Q4 FY26 performance marks a defining quarter for the Bank, delivering our highest-ever quarterly profitability and reflecting the strength of our core operating model. This outcome is a result of consistent execution, a balanced growth strategy and our ability to stay focused on fundamentals amid a dynamic external environment. Importantly, our MSME franchise continued to demonstrate resilience during the quarter. Irrespective of external headwinds, credit demand from MSMEs remained stable and our lending momentum in this segment was unaffected, supported by our deep relationships across trade and manufacturing clusters. This reinforces our long-standing belief that well- underwritten MSME portfolios can deliver both growth and asset quality. Asset quality trends remained strong, with further improvement in NPA ratios, reflecting disciplined underwriting and robust recovery efforts. At the same time, gains from our ongoing operational and technology-led initiatives are beginning to show more clearly in our efficiency metrics and customer experience. As we move into FY27, we are entering the next phase of growth with a strong capital position and greater operating leverage. Our focus will be on scaling our MSME and retail businesses, deepening customer engagement, and leveraging digital capabilities to drive productivity. We remain confident of sustaining growth momentum while maintaining prudent risk management and delivering consistent value to our stakeholders.
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