Tamilnad Mercantile Bank shares are trading at ₹517.90 on the National Stock Exchange as of January 1, 2026, representing a gain of 0.80% from the day's opening following the announcement of strong Q3 FY25 results. The stock has shown positive momentum with a 1.19% performance over the last 5 trading sessions and maintains a trading volume of 1,31,687 shares. The bank's market capitalization stands at ₹8,208.94 crore, with the stock trading at a P/E ratio of 7.66, significantly lower than the sectoral average of 19.50. The stock reached a 52-week high of ₹557.00 in December 2025 and a low of ₹401.00 in April 2025.
Tamilnad Mercantile Bank has reported stellar business performance for Q3 FY25 ended December 31, 2025, achieving significant growth across all major business parameters. The bank's total business reached ₹1,07,470 crore, representing a substantial year-on-year growth of 14.28% from ₹94,042 crore in the same quarter last year. The latest figures also show 4.93% sequential growth from ₹1,02,417 crore in the previous quarter, demonstrating the bank's continued expansion and robust operational performance during the quarter. This strong performance reflects effective business strategies and their successful implementation in the competitive private banking sector.
The bank's lending portfolio demonstrated particularly strong performance during Q3 FY25, with total advances growing by 16.30% to reach ₹50,763 crore from ₹43,650 crore in the year-ago period. The advances portfolio also recorded 8.01% sequential growth from ₹46,996 crore in the previous quarter. This robust growth in advances indicates strong credit demand and reflects the bank's effective lending strategies while successfully meeting customer credit requirements in the competitive banking landscape. The healthy sequential growth demonstrates consistent momentum in the bank's core lending operations.
Deposit mobilization showed healthy growth during the quarter, with total deposits increasing by 12.53% to ₹56,707 crore from ₹50,392 crore in the year-ago period. Deposits also grew 2.32% sequentially from ₹55,421 crore in the September quarter. The bank's Current Account Savings Account (CASA) deposits showed particularly strong performance, with CASA deposits growing 14.93% year-on-year to ₹15,847 crore from ₹13,788 crore in the corresponding quarter last year. The CASA portfolio also recorded 4.51% sequential growth from ₹15,163 crore in the previous quarter, providing the bank with cost-effective funding that enhances profitability margins and demonstrates improved customer engagement.
The bank continues its expansion strategy with recent opening of five new branches in Velandipalayam, Kalapatti, Davanagere, Puthukkadai, and Nikol last month to expand its reach across key markets. The bank also strengthened its governance structure by appointing Thiru S Balasubramanian, Deputy Vice President, as the data protection officer effective December 26, 2025, reinforcing its commitment to regulatory compliance and data security. With total operating revenue of ₹5,291.27 crore and equity capital of ₹158.35 crore for FY25, the bank maintains a strong financial foundation for continued growth. These positive results are likely to be viewed favorably by investors, reflecting the bank's resilience and growth potential in the competitive private banking sector.
