TamilNad Mercantile Bank Q4 PAT remains flat, reports over 5% growth in NII

TamilNad Mercantile Bank on Monday reported a 5.59% year-over-year (y-o-y) increase in its fourth quarter net interest income (NII) at ₹567 crore but reported a flat growth in its net profit at ₹253 crore.

Operating profit fell over 9% to ₹367 crore during the fourth quarter. Asset quality deteriorated during the period with gross non-performing assets (NPAs) increasing to 1.44% as compared to 1.39% in the same period of previous fiscal. Net NPAs rose to 0.85% as compared to 0.62%.

For the fiscal year 2024, the bank’s net profits rose 4.18% to ₹1,072 crore. NII grew 2.72% to ₹2,151 crore. The lender pointed out that this is the highest ever net profit and net interest income declared by the bank.

The bank’s advance level increased to ₹39,970 crore with a growth rate of 6.35% while deposits grew 3.66% to ₹49,515 crore. Its current accounts savings accounts (CASA) increased by ₹940 crore to ₹14,676 crore as at March 31, 2024, registering a growth of 6.84%. Stressed assets ratio decreased to 2.7% from 3.18% y-o-y, it said.

The board of directors of the bank has recommended a final dividend of ₹10/- per share.

TamilNad Mercantile Bank opened 22 branches during the financial year 2024 and said it has plans to open another 50 branches in the financial year 2025. The lender said that in order to tap the emerging MSME market with focused attention, an MSME loan processing hub has been started in many cities including Ahmedabad, Bengaluru, Chennai, Coimbatore, Hyderabad, Madurai, Mumbai, Thoothukudi, Trichy and Salem.

Tamilnad Mercantile Bank is an old private sector bank with its headquarters in Thoothukudi. The bank has 552 branches and 12 regional offices across 17 states and four union territories.

Shares of the lender fell nearly 1.5% since the beginning of the year. The stock has gained over 21% in the last one year.