Tamilnad Mercantile Bank Reports 15.3% YoY Rise in Q4 FY25 Net Profit to ₹291.9 Crore

Tamilnad Mercantile Bank Ltd (TMB), a leading private sector lender with a stronghold in southern India, reported a 15.3% year-on-year (YoY) increase in net profit for the quarter ended March 2025.

Q4FY25 Performance

The bank’s net profit rose to ₹291.9 crore, up from ₹253.1 crore in the corresponding quarter last year.

Net interest income (NII), which reflects the bank’s core earnings, increased marginally by 0.2% year over year, reaching ₹567.9 crore compared to ₹567 crore in the same period last year.

Despite stable loan growth, the bank’s margins remained largely flat, weighed down by a persistently high interest rate environment.

Improvement in Asset Quality

TMB showed a sequential improvement in its asset quality. The bank’s gross non-performing assets (GNPA) ratio declined to 1.25% in Q4 FY25 from 1.32% in the previous quarter.

Meanwhile, the net NPA ratio improved to 0.35%, down from 0.41% on a quarter-on-quarter (QoQ) basis. These improvements reflect better loan recoveries and prudent underwriting standards.

Focus on Digital Expansion and Capital Strengthening

Primarily serving retail and MSME clients, Tamilnad Mercantile Bank has been actively pushing for digital transformation and expanding its customer base.

The bank is also taking measures to strengthen its capital adequacy and enhance operational efficiency across its branch network.

Stock Performance 

On April 23, 2025, shares of Tamilnad Mercantile Bank closed at ₹441.55 on the Bombay Stock Exchange (BSE), down by ₹6.45 or 1.44%, despite the strong earnings performance.

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