Tamilnad Mercantile Bank Q1 profit jumps 35% on strong income growth

Synopsis

Tamilnad Mercantile Bank reported a 35% year-on-year rise in June quarter net profit to Rs 412 crore, driven by higher income and net interest income. The lender also posted improved margins, stronger asset quality and robust growth in advances and deposits.

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Tamilnad Mercantile Bank reported a 35% year-on-year jump in June quarter net profit at Rs 412 crore against Rs 305 crore in the year ago period, backed by a 17.5% rise in total income at Rs 1901 crore.

Pre-provision operating profit for the private sector lender stood 48% higher at Rs 611 crore.

Its net interest margin for the quarter was at Rs 4.29%, up 45 basis points year-on-year. Net interest income rose 32% at Rs 765 crore.

The bank has a healthy asset quality with gross non-performing assets ratio being at 0.69%, improved 53 basis points year-on-year.

Its gross advances grew 27% year-on-year to Rs 57306 crore while deposits rose 20% to Rs 64409 crore at the end of June.

Meanwhile, Home First India Finance Company India Ltd reported a 35% rise in net profit for the first quarter of the fiscal at Rs 160 crore against Rs 119 crore in the year ago period, backed by higher income and business growth. The operating profit for the quarter stood 33% higher at Rs 224 crore. The mortgage lender's total income stood 19% higher year-on-year at Rs 540 crore. Its assets under management expanded 26% year-on-year to Rs 16938 crore while gross non-performing assets ratio remained steady at 1.8%.

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