Tamilnad Mercantile Bank Ltd delivered robust financial results for the third quarter ended December 31, 2025, demonstrating steady earnings growth and improving operational metrics. According to reports from CNBC TV18, the bank reported net profit of ₹341.5 crore, representing a 13.8% year-on-year increase from ₹300.2 crore in the corresponding period last year. The bank's net interest income (NII) grew 13.3% to ₹646 crore compared with ₹570.4 crore in the year-ago quarter, supported by growth in advances and deposits. The healthy profit growth was largely supported by strong core income, as net interest income (NII) grew 13.3% YoY to ₹646 crore, indicating stable loan growth and better yield management.
The bank demonstrated significant improvement in asset quality indicators during the quarter. As reported by CNBC TV18, gross non-performing assets (GNPA) declined sequentially to 0.91% from 1.01% in the previous quarter, while net NPAs eased to 0.20% from 0.26% in the previous quarter. The provision coverage ratio strengthened to 96.08% with technical write-offs and 78.35% without write-offs, underscoring the bank's conservative provisioning approach. The lender continued to carry a COVID-related contingency provision of ₹250 crore on advances. The falling NPA ratios reinforce the bank's conservative lending approach and balance-sheet strength, highlighting tighter credit controls and effective recovery efforts.
According to CNBC TV18, the bank achieved substantial business expansion during the quarter. Total business grew 14.28% year-on-year to ₹1.07 lakh crore, up from ₹94,042 crore in the year-ago quarter, and rose nearly 5% sequentially. Deposits increased 12.53% to ₹56,707 crore, while advances climbed 16.30% to ₹50,763 crore. CASA deposits rose 14.93% year-on-year to ₹15,847 crore, reflecting stable granular funding and supporting the bank's funding profile. The bank's net interest income (NII) grew 13.3% to ₹646 crore compared with ₹570.4 crore in the year-ago quarter, supported by growth in advances and deposits.
As reported by CNBC TV18, shares of Tamilnad Mercantile Bank reacted positively post results, hitting an intraday high of ₹643.70 on the NSE before trading at ₹624.50, up 4.61%, as of 1:46 pm. The positive market response reflects investor confidence in the bank's double-digit growth in profit and net interest income, alongside improving asset quality and steady expansion in deposits, advances and overall business metrics. The bank's Q3 performance points to resilient fundamentals, steady earnings momentum, and improving asset quality, positioning it well amid a challenging banking environment.
