Tamilnad Mercantile Bank Reports 42% Rise in Q2 Net Profit to ₹451 Crore

Private sector lender Tamilnad Mercantile Bank on Monday announced its financial results for the second quarter of the fiscal year, reporting a 42 per cent growth in net profit. The bank registered a net profit of ₹451 crore for the July-September quarter of FY27.

In comparison, the lender had posted a net profit of ₹317 crore during the corresponding quarter of the previous fiscal year, 2025-26.

The bank's financial performance was supported by an increase in interest income. During the second quarter of FY27, interest income rose by 29 per cent to ₹1,820 crore, up from ₹1,413 crore recorded in the same period of the previous fiscal year.

Alongside profit growth, the bank also reported an improvement in asset quality indicators. Gross non-performing assets (NPAs) declined during the quarter, dropping to 0.61 per cent of gross advances. In the corresponding quarter of FY26, gross NPAs stood at 1.01 per cent.

Following the earnings announcement, shares of Tamilnad Mercantile Bank were trading at ₹786.30 on the Bombay Stock Exchange (BSE), marking a decrease of 1.82 per cent over the previous close.

"Tamilnad Mercantile Bank's Q2 performance reflects healthy core growth, driven by a significant 29 percent rise in interest income and a notable improvement in asset quality with gross NPAs dropping to 0.61 percent. While the stock reacted with a minor decline on the exchange, the underlying financial metrics demonstrate sound operational execution and effective risk management by the private sector lender during the quarter." — Dr. Shishir Gupta, Founder & CEO, StartupLanes