Tamilnad Mercentile Bank shares jump nearly 8%; check out the reasons

Shares of Tamilnad Mercentile Bank (TMB) jumped as much as 7.56% to hit a high of ₹485 apiece on Monday, August 5. The lender on Saturday reported a 9.97% rise in its net profit for the April-June 2024 quarter at ₹287.29 crore on account of a rise in interest income.

The Tamil Nadu-based bank registered a net profit of ₹261.23 crore during the corresponding quarter of last year. For the financial year ending March 31, 2024, the net profit stood at ₹1,072.03 crore.

Total income during the April-June 2024 quarter went up to ₹1,046.03 crore from ₹942.98 crore registered in the year ago period. For the financial year ending March 31, 2024, the total income stood at ₹5,492.85 crore.

The operating profit increased to ₹469 crore from ₹380 crore YoY. The net interest margin (NIM) increased to 4.12% from 4.00% YoY, and the interest income improved to ₹1,281 crore from ₹1,156 crore in the year-ago period, as per the company's earnings release. 

The bank also said that it opened 10 new branches (six branches in Tamil Nadu and four branches in other states) during Q1 FY25. 

The bank also launched an online customer portal for foreign exchange operations facilities for customers.

During the quarter, the TMB Apartment Savings Bank Account for high-net-worth individuals residing in apartments, housing societies, and gated communities was launched.

Besides, as per news reports, the Thoothukudi-based bank has sent three names to the Reserve Bank of India (RBI) for the positions of managing director (MD), chief executive officer (CEO), and executive director. The RBI is likely to make a decision in 90 days.