Private sector lender Tamilnad Mercantile Bank Ltd. (TMB) standalone net profit for the quarter ended December rose by 38% to ₹280 crore due to increase in net interest income and improvement in asset quality, said S. Krishnan, MD & CEO.
Addressing the media, he said the net interest income increased to ₹534 crore from ₹453 crore. Net interest margin rose to 4.50% from 4.03%.
During the quarter, total income marginally declined to ₹1,173 crore from ₹1,213 crore, of which interest income accounted for ₹1,012 crore and non-interest income ₹161 crore.
The Gross NPA as a percentage to total advances contracted to 1.70% from 3.08% and net NPA declined to 0.75% from 1.44%. Provision Coverage Ratio increased to 89.83% from 83.71%.
Mr. Krishnan said the slippages during the quarter was ₹66.52 crore and it was offset by cash recoveries of ₹68.78 crore.
The total business rose by 5.69% to ₹78,242 crore, of which deposit accounted for ₹43,440 crore. Advances to RAM sector accounted for 89% representing ₹31,102 crore. The capital adequacy ratio rose to 24.44%.
“We opened two branches during the third quarter and plans are on to open another 25 branches before the end of current fiscal,” he said.