Tamilnad Mercantile Bank (TMB) reported a 35% year-on-year increase in net profit for the quarter ended June 2026, reaching ₹412 crore.
The regional lender attributed the bottom-line expansion to robust growth in its core business segments, specifically highlighting gains in retail and agricultural lending.
This performance marks a significant step in the bank's turnaround trajectory, demonstrating improved operational efficiency and credit demand in its key markets.
The bank's funding position also strengthened during the period, with the Current Account Savings Account (CASA) ratio rising to ₹16,852 crore.
A higher CASA base typically reduces the cost of funds for lenders, providing a structural advantage that can support net interest margins.
This improvement in deposit quality complements the asset-side growth, suggesting a balanced approach to balance sheet management.