Tamilnad Mercantile Bank (TMB) shares were trading at 425.50 INR on the National Stock Exchange at 12:45 PM IST on Thursday, representing a 0.85% decrease from the previous close. The bank, listed on both the BSE and NSE, recorded a total trading volume of 185,000 shares during the mid-day session.
The lender’s current market capitalization stands at approximately 67.32 billion INR, equivalent to 810.6 million USD at prevailing exchange rates.
Latest Quarterly Results
For the third quarter ended December 31, 2025, Tamilnad Mercantile Bank reported a net profit of 303.18 crore rupees, a year-over-year increase from 284.19 crore rupees in the corresponding period of the prior year. Total income for the quarter rose to 1,507.03 crore rupees, compared to 1,387.35 crore rupees year-over-year.
Net Interest Income (NII) was recorded at 566 crore rupees. The bank’s Net Interest Margin (NIM) stood at 3.90%.
Segment performance highlights included:
- RAM Portfolio: Retail, Agriculture, and MSME lending accounted for 92% of the bank’s total advances.
- Agriculture: This segment reached 13,858 crore rupees, representing 35% of total advances.
- MSME: Loans to micro, small, and medium enterprises totaled 12,965 crore rupees, or 32% of the portfolio.
- Retail: The retail segment contributed 9,923 crore rupees, accounting for 25% of the total loan book.
Financial Trends
Full-Year Results Context
On a cumulative nine-month basis, the bank’s net profit reached 891.60 crore rupees, following a trend of year-over-year expansion. Asset quality metrics showed a Gross Non-Performing Asset (GNPA) ratio of 1.41% and a Net Non-Performing Asset (NNPA) ratio of 0.38%. The Provision Coverage Ratio was reported at 88.52%.
Business & Operations Update
The bank expanded its physical infrastructure to 561 branches and 12 regional offices. Operational focus remains on the RAM segments, which grew 7.07% during the reporting period. Corporate lending is maintained at 8% of the total portfolio. The bank reported a Capital Adequacy Ratio (CRAR) of 29.52% under Basel III norms.
M&A or Strategic Moves
No mergers, acquisitions, or significant institutional asset transfers were disclosed during the Q3 earnings call. The bank continues to operate as an independent private sector lender.
Equity Analyst Commentary
Institutional research and local brokerages have noted the bank’s focus on high-yield granular lending. Market analysts observed that while the bank maintains high capital adequacy, the CASA (Current Account Savings Account) ratio of 29% remains a primary metric for monitoring cost of funds.
Guidance & Outlook
Management indicated that the bank will prioritize expansion in rural and semi-urban areas. Industry observers are monitoring the bank’s transition toward digital banking services and its ability to maintain margins amidst fluctuating interest rate environments in the domestic market.
Performance Summary
Tamilnad Mercantile Bank shares closed mid-day down 0.85% at 425.50 INR. Quarterly net profit reached 303.18 crore rupees, supported by a 92% concentration in Retail, Agriculture, and MSME lending. Asset quality remained stable with a Net NPA of 0.38%.
