What was Tamilnad Mercantile Bank's net profit in Q3FY26?

Tamilnad Mercantile Bank reported a net profit of ₹342 crore for the third quarter of fiscal year 2026.

What drove the profit growth for TMB Bank in Q3FY26?

The bank's profit growth was driven by a 16% increase in advances, particularly from MSME and gold loans, alongside a 12.5% rise in deposits.

How did TMB Bank's asset quality perform in Q3FY26?

Asset quality improved significantly, with Gross NPA decreasing to 0.91% and Net NPA falling to 0.20% in Q3FY26.

Home / Business and Economy / TMB Bank Profit Soars 14% Amid Strong Loan Growth

TMB Bank Profit Soars 14% Amid Strong Loan Growth

4 Feb

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Summary

Net profit rose 14% to ₹342 crore in Q3FY26.
Advances grew 16% driven by MSME and gold loans.
Gross NPA decreased to 0.91% in Q3FY26.

TMB Bank Profit Soars 14% Amid Strong Loan Growth

Tamilnad Mercantile Bank announced a 14% year-on-year increase in net profit for the third quarter of fiscal year 2026, achieving ₹342 crore. Total income for the quarter stood at ₹1,655 crore.

The bank's advances grew by 16%, primarily due to strong performance in MSME and fixed-rate gold loans. Total advances reached ₹50,763 crore as of December 2025. Deposits also saw a notable 12.5% rise, reaching ₹56,707 crore.

Total business expanded by 14.3% year-on-year to ₹1,07,470 crore. The bank also reported a healthy increase in CASA deposits, up 14.9% year-on-year to ₹15,847 crore.

Asset quality showed marked improvement, with Gross Non-Performing Assets (NPA) falling to 0.91% from 1.32% in the prior year's comparable quarter. Net NPA also decreased to 0.20%.

The bank anticipates growth in total business exceeding 15% for the full fiscal year FY26. This upward revision reflects the strong momentum observed, particularly in the MSME loan segment, which is expected to benefit from recent international trade deals.

Digital initiatives, including a new AI-powered call center, are being implemented to enhance customer service and collection efficiency. The bank plans to allocate approximately ₹250 crore for technology modernization and digital transformation in FY27.

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