Tamilnad Mercantile Bank Q4FY26 Results: 28% Profit Growth, Strong Asset Quality
April 30, 2026
Tamilnad Mercantile Bank delivered strong Q4FY26 results with net profit growing 28.01% to INR373.65 crores, exceeding guidance across all key parameters including CASA growth (22.35%), deposit growth (14.94%), and advances growth (20.32%). Asset quality improved significantly with GNPA at 0.73%, net NPA at 0.18%, and PCR at 74.89%. The bank's net worth crossed INR10,000 crores, ROA reached 2.05%, ROE 15.03%, and the Board recommended a 125% dividend for FY26.
Tamilnad Mercantile Bank Limited has announced its audited financial results for the quarter and financial year ended March 31, 2026, demonstrating strong performance across key metrics. The bank's net profit for Q4FY26 stood at INR373.65 crores, representing a year-on-year growth of 28.01%. The Board has recommended a dividend of 125% for FY26.
Financial Performance Highlights
The bank delivered robust growth in core business parameters, exceeding its earlier guidance. Total business grew 17.37% to INR1,15,091 crores as of March 31, 2026. Net interest income increased 24.04% to INR704.45 crores, while operating profit for the quarter grew 29.29% year-on-year.
Parameter Q4FY26 Performance Guidance Achievement CASA Growth 22.35% 15% Exceeded Deposit Growth 14.94% 13-13.5% Exceeded Advances Growth 20.32% 16-17% Exceeded Total Business Growth 17.37% 15% Exceeded ROA 2.05% 1.85%+ Exceeded ROE 15.03% 14%+ Exceeded
Business Growth and Portfolio Quality
CASA reached INR17,365 crores with the CASA share improving to 28.14% from 26.44% in March 2025. The bank recorded its highest deposit growth in the past 39 quarters and highest advance growth in the past 40 quarters. Advances grew 20.32%, which would have been 22.57% if INR1,000 crores sold through Inter-Bank Participation Certificates were included.
The gold loan portfolio, comprising 46.44% of total advances, showed strong performance with a portfolio LTV of 53.25% and yield of 10.11%. The retail advances portfolio delivered an ROA of 2.21% with NPA at 0.13%. MSME advances turned around to achieve 14.88% year-on-year growth with an ROA of 2.58%.
Asset Quality Metrics
The bank maintained exceptional asset quality with GNPA at 0.73% and net NPA at 0.18%. The stressed assets ratio stood at just 1.14%. Provision coverage ratio on book reached 74.89%, while PCR with technical write-off stood at 96.14%. SMA-0, SMA-1, and SMA-2 combined stood at 1.29%, down 1.26% from the previous year.
Asset Quality Metric Value GNPA 0.73% Net NPA 0.18% PCR (on book) 74.89% PCR (with technical write-off) 96.14% SMA (0+1+2) 1.29% Portfolio at Risk (1 day) 2.02%
Capital and Operational Metrics
Net worth crossed INR10,000 crores for the first time, with book value per share at INR638 and earnings per share at INR23.60. Capital adequacy stood strong at 33.73%. The cost-to-income ratio was contained at 44.80% for the year, though it would have been 39.54% for Q4 excluding the performance-based incentive of INR49.80 crores accounted for in Q4FY26.
Net interest margin for Q4 stood at 4.18%, up sequentially from 4.04%, while the full-year NIM was 3.98%. The bank opened 44 branches during FY26, with 15 outside Tamil Nadu, and plans to open 60 branches in FY27.
Regulatory Compliance
The bank published its audited financial results in newspapers on April 28, 2026, in compliance with Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The earnings conference call transcript was made available on April 30, 2026, pursuant to Regulation 30 of SEBI regulations.
For FY27, management has guided for deposit growth of at least 16% and aims to defend the 20% advances growth achieved in FY26. The bank expects ROA to be in the 1.9-2% range and ROE at 14-15% for FY27.
Tamilnad mercantile bank Limited has issued an official intimation regarding its analysts and investors meeting scheduled for May 05, 2026. The bank has provided comprehensive details for the interaction with specific institutional participants, maintaining full compliance with regulatory requirements under SEBI regulations.
Meeting Specifications
The bank has announced a structured investor meeting with designated institutional participants. The interaction will be conducted in-person format, facilitating direct engagement between bank representatives and the investment community.
Parameter: Details Date: Tuesday, May 05, 2026 Time: 02:00 P.M. – 07:00 P.M. Type: Analysts/Investors Meet Format: In-Person Participants: Tata Asset Management Pvt. Ltd. & Baroda BNP Paribas Asset Management India Pvt. Ltd.
Regulatory Compliance Framework
The intimation has been submitted pursuant to Regulation 30(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The bank has formally notified both the National Stock Exchange of India Ltd and BSE Limited about the meeting arrangements through reference number TMB.SE.15/2026-27 dated April 29, 2026.
The bank has explicitly stated that no Unpublished Price Sensitive Information (UPSI) or material information will be shared during the meeting, ensuring strict compliance with insider trading regulations and maintaining transparency standards required under current securities law.
Administrative Framework
The communication maintains operational flexibility regarding scheduling, noting that the date and time remain subject to change due to unforeseen exigency on the part of the bank or host. The official notification was digitally signed by Swapnil Yelgaonkar, Company Secretary & Compliance Officer, on April 29, 2026, at 13:46:30 +05'30'.
Administrative Detail: Information Reference Number: TMB.SE.15/2026-27 Notification Date: April 29, 2026 Signatory: Swapnil Yelgaonkar Designation: Company Secretary & Compliance Officer Head Office: 57-V.E. Road, Thoothukudi – 628 002
The bank's secretarial section has coordinated the regulatory filing with appropriate contact details including phone number 0461-2325136 and email secretarial@tmbank.in for further correspondence regarding the scheduled interaction.
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Financial Performance Highlights
The bank delivered robust growth in core business parameters, exceeding its earlier guidance. Total business grew 17.37% to INR1,15,091 crores as of March 31, 2026. Net interest income increased 24.04% to INR704.45 crores, while operating profit for the quarter grew 29.29% year-on-year.
Parameter Q4FY26 Performance Guidance Achievement CASA Growth 22.35% 15% Exceeded Deposit Growth 14.94% 13-13.5% Exceeded Advances Growth 20.32% 16-17% Exceeded Total Business Growth 17.37% 15% Exceeded ROA 2.05% 1.85%+ Exceeded ROE 15.03% 14%+ Exceeded
Business Growth and Portfolio Quality
CASA reached INR17,365 crores with the CASA share improving to 28.14% from 26.44% in March 2025. The bank recorded its highest deposit growth in the past 39 quarters and highest advance growth in the past 40 quarters. Advances grew 20.32%, which would have been 22.57% if INR1,000 crores sold through Inter-Bank Participation Certificates were included.
The gold loan portfolio, comprising 46.44% of total advances, showed strong performance with a portfolio LTV of 53.25% and yield of 10.11%. The retail advances portfolio delivered an ROA of 2.21% with NPA at 0.13%. MSME advances turned around to achieve 14.88% year-on-year growth with an ROA of 2.58%.
Asset Quality Metrics
The bank maintained exceptional asset quality with GNPA at 0.73% and net NPA at 0.18%. The stressed assets ratio stood at just 1.14%. Provision coverage ratio on book reached 74.89%, while PCR with technical write-off stood at 96.14%. SMA-0, SMA-1, and SMA-2 combined stood at 1.29%, down 1.26% from the previous year.
Asset Quality Metric Value GNPA 0.73% Net NPA 0.18% PCR (on book) 74.89% PCR (with technical write-off) 96.14% SMA (0+1+2) 1.29% Portfolio at Risk (1 day) 2.02%
Capital and Operational Metrics
Net worth crossed INR10,000 crores for the first time, with book value per share at INR638 and earnings per share at INR23.60. Capital adequacy stood strong at 33.73%. The cost-to-income ratio was contained at 44.80% for the year, though it would have been 39.54% for Q4 excluding the performance-based incentive of INR49.80 crores accounted for in Q4FY26.
Net interest margin for Q4 stood at 4.18%, up sequentially from 4.04%, while the full-year NIM was 3.98%. The bank opened 44 branches during FY26, with 15 outside Tamil Nadu, and plans to open 60 branches in FY27.
Regulatory Compliance
The bank published its audited financial results in newspapers on April 28, 2026, in compliance with Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The earnings conference call transcript was made available on April 30, 2026, pursuant to Regulation 30 of SEBI regulations.
For FY27, management has guided for deposit growth of at least 16% and aims to defend the 20% advances growth achieved in FY26. The bank expects ROA to be in the 1.9-2% range and ROE at 14-15% for FY27.
Tamilnad mercantile bank Limited has issued an official intimation regarding its analysts and investors meeting scheduled for May 05, 2026. The bank has provided comprehensive details for the interaction with specific institutional participants, maintaining full compliance with regulatory requirements under SEBI regulations.
Meeting Specifications
The bank has announced a structured investor meeting with designated institutional participants. The interaction will be conducted in-person format, facilitating direct engagement between bank representatives and the investment community.
Parameter: Details Date: Tuesday, May 05, 2026 Time: 02:00 P.M. – 07:00 P.M. Type: Analysts/Investors Meet Format: In-Person Participants: Tata Asset Management Pvt. Ltd. & Baroda BNP Paribas Asset Management India Pvt. Ltd.
Regulatory Compliance Framework
The intimation has been submitted pursuant to Regulation 30(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The bank has formally notified both the National Stock Exchange of India Ltd and BSE Limited about the meeting arrangements through reference number TMB.SE.15/2026-27 dated April 29, 2026.
The bank has explicitly stated that no Unpublished Price Sensitive Information (UPSI) or material information will be shared during the meeting, ensuring strict compliance with insider trading regulations and maintaining transparency standards required under current securities law.
Administrative Framework
The communication maintains operational flexibility regarding scheduling, noting that the date and time remain subject to change due to unforeseen exigency on the part of the bank or host. The official notification was digitally signed by Swapnil Yelgaonkar, Company Secretary & Compliance Officer, on April 29, 2026, at 13:46:30 +05'30'.
Administrative Detail: Information Reference Number: TMB.SE.15/2026-27 Notification Date: April 29, 2026 Signatory: Swapnil Yelgaonkar Designation: Company Secretary & Compliance Officer Head Office: 57-V.E. Road, Thoothukudi – 628 002
The bank's secretarial section has coordinated the regulatory filing with appropriate contact details including phone number 0461-2325136 and email secretarial@tmbank.in for further correspondence regarding the scheduled interaction.
We’re building Scanx - to help you express your trading & investing idea, to help you analyse the markets better.
Stock Markets are the true indicator of the growth of any country's economy. We are bullish on India, we are bullish on India's prospects to be one of largest economies of the world. We believe that Stock Markets provide an unique opportunity for all Indians to participate in the growth story of India. We are enabling the same for Indians.
As financial services are becoming more accessible, there is now a large set of Indians today who are financially aware and literate. They value time and seek high quality products & services. Most screening, trading, investing platforms available today are more or less similar to each other, and they have not evolved with time. While both traders & investors have gotten smart about how they make money and build wealth, as users they have continued to use the same products, features, and platforms that were available for years with little or no innovation. We plan to change that - a technology-led platform built for super traders and long term investors.