Tamilnad Mercantile Bank Limited has informed the Exchange about Transcript
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Tamilnad Mercantile Bank reported its Q1 FY26 results, with total business at INR 98,923 crores (up 9.86% YoY) and crossing the INR 1 lakh crore mark. Deposits grew 9.38% YoY to INR 53,803 crores, with CASA share improving 34 basis points quarter-on-quarter to 26.78%. Advances grew 10.44% to INR 45,120 crores, largely driven by gold loans and retail personal loans. Net profit rose 6.13% YoY despite a NIM compression to 3.84% (from 4.25%) and the bank upfronting INR 41.27 crores of performance-based incentives in this quarter. Asset quality remained strong with GNPA at 1.22% and NNPA at 0.33%, backed by a provision coverage ratio of 73.04% and 108% collateral cover on the stress book. The bank targets 10-12% deposit growth and ~15% advance growth for FY26, with MSME expected to contribute meaningfully once the loan management system goes live by September 2025.
The results are mixed — strong asset quality and improving CASA trends are positives, but NIM compression and upfronted expenses weighed on operating profit. Forward guidance on NIM of 3.85-3.95% and advance growth of 15% suggests management confidence in margin stabilization and MSME-led growth in H2 FY26, which could be a positive trigger for the stock.