Tamilnad Mercantile Bank (TMB) has reported a 12 per cent increase in its net profit at ₹261 crore for the June 2023 quarter when compared with ₹234 crore in the year-ago quarter, driven by a rise in interest income, other incomes and lower provisions.
The Thoothukudi (Tamil Nadu)-headquartered old private sector bank operating profit was marginally higher at ₹380 crore in Q1FY24 when compared with ₹374 crore in the year-ago quarter.
Interest income grew to ₹1,156 crore (₹1,002 crore), while non-interest income rose to ₹167 crore (₹140 crore). Total expenditure was higher at ₹943 crore (₹767 crore). Provisions and contingencies were lower at ₹39 crore as against ₹55 crore.
Total slippages were at ₹101 crore while recoveries and upgradations at ₹42 crore, S Krishnan, Managing Director and CEO of TMB.
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As of June 30, 2023, the gross NPA as a percentage of total advances stood at 1.56 per cent, down from 1.69 per cent in the year-ago quarter, but up from 1.39 per cent in the March 2023 quarter. Net NPA stood at 0.66 per cent, down from 0.93 per cent in the year-ago period and 0.62 per cent in the preceding quarter. Provision coverage ratio of the bank increased to 90.49 per cent (88.08 per cent).
“Our objective is to keep the gross and net NPAs below 2 per cent and 1 per cent, respectively,” he said.
Total advances stood at ₹37,292 crore when compared with ₹33,823 crore, while total deposits grew to ₹47,008 crore from ₹43,233 crore. At ₹33,574 crore, RAM (retail, agriculture, and MSME) sector accounted for 90 per cent of gross advances in Q1 of this fiscal.
Return on assets stood at 1.85 per cent in Q1FY24 as against 1.83 per cent a year ago, while return on equity dropped to 14.80 per cent from 17.41 per cent. The net worth of TMB increased to ₹7,190 crore from ₹5,427 crore.
