Tamilnad Mercantile Bank Ltd.TMB: record profit ₹451 Cr, loans up 29%, guidance raised

Tamilnad Mercantile Bank's Q2 FY27 call, held on 26 October 2026, reported record net profit of ₹451 crore, up 42%, on operating profit of ₹642 crore, up 41.8%, with ROA of 2.18% and ROE of 16.92%.

Total business grew 27.25% to ₹1,30,237 crore, the fastest growth in 18 years and eight points faster than the industry, with advances up 29.32% and deposits up 25.49%. Net interest margin was 4.19%, up 36 basis points on the year but down 10 basis points on the quarter as term deposits grew about 29% against 16.26% for CASA and cost of deposits rose to 5.85%. Gross NPA was 0.61%, net NPA 0.14% and credit cost 9 basis points, and the bank has provided fully for SMA-1 and SMA-2 under expected credit loss norms, covering about 80% of a ₹385 crore requirement.

Management lifted its guidance to deposit growth of 20% plus and advances growth of 22% plus, set net interest margin at 4.10% plus or minus 5 basis points for the second half, and expects cost-to-income well below 44%. A decision from the RBI on regularising disputed shares is awaited.