Important StoriesTata Communications to invest $400-450 million for India’s AI fibre networkPrivate logistics players tap India Post to expand last-mile reachCentre includes E100 in emission framework for flex-fuel vehiclesGovernment extends RELIEF scheme for exporters by six months to March 2027Trade-margin cap on cancer drugs may push up costs elsewhere in supply chain: ExpertsFollow UsFOLLOW US ON WHATSAPPHomeGO BACK TO HOME THIS AD SUPPORTS OUR JOURNALISM. SUBSCRIBE FOR MINIMAL ADS. THIS AD SUPPORTS OUR JOURNALISM. SUBSCRIBE FOR MINIMAL ADS. Tamilnad Mercantile Bank records highest-ever net profit of ₹451 crore for Q2 Total Business grew by 27.25%, highest year on year growth since listing of the bank. Net Interest Income for the quarter stood at ₹807 Crore, a growth rate of 35.17% YoY By BL Chennai Bureau Updated - October 26, 2026 at 08:17 PM.×ShareWhatsAppXFacebookLinkedInMessengerRedditMailhttps://www.thehindubusinessline.com/money-and-banking/tamilnad-mercantile-bank-records-highest-ever-net-profit-of-451-crore-for-q2/article71627596.eceCopy Private sector lender Tamilnad Mercantile Bank (TMB) on Monday reported its highest ever quarterly net profit at ₹451 crore for the quarter ended September 2026 (Q2FY27). This represents a growth of 42 per cent YoY.

This performance came off a strong growth in core business and subsequently the net interest income.

Total Business grew by 27.25 per cent, highest year on year growth since listing of the bank. Net Interest Income for the quarter stood at ₹807 Crore, a growth rate of 35.17 per cent YoY.

The performance is due to both measures taken to drive the business growth and net interest income on one side, and also containing the cost, Salee S Nair, Managing Director and CEO of the Thoothukudi-headquartered bank, told mediapersons.

While not offering a clear guidance, the MD and CEO said that as per current trends, advances are likely to grow at 22% plus for the full fiscal year and deposits, which are more difficult to judge at this stage, are expected to grow 20% plus.

The bank’s total deposits grew by 25.49 per cent on YoY basis and stood at ₹69546 Crore. Advances increased to ₹60691 Crore at a growth rate of 29.32 per cent on YOY basis.

FCNR(B) deposit mobilised was negligeble for the bank at $51.9 million as it does not have international presence. “We are thinking of looking at Singapore, Malaysia and Dubai for overseas linkages but it is early stages at the moment,” Nair said.

Asset quality continues its improvement trend. Gross NPA declined 40 basis points YoY and stood at 0.61 per cent. The bank described this as its lowest GNPA in the last 10 years. Net NPA has decreased to 0.14 per cent, an improvement of 12 bps.

TMB has fully provided for SMA I & II accounts, as per ECL norms, Nair said. For TMB, the estimated ECL impact is ₹385 crore as per current estimations and the bank has already provided for around ₹304.24 crore as of September 30.

Talking about its focus on digital infrastructure, Nair said that cybersecurity is an important focus for the Bank and 20% of its total IT infra investments would be in managing cybersecurity. “We are also well ahead of the curve in getting our act together for DPDP compliance,” he added.

Shares of TMB ended the trading day at ₹804.05, almost flat on the NSE.

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