Private sector lender Tamilnad Mercantile Bank Ltd (TMB) on Friday (October 27) reported a 4.3% year-on-year (YoY) jump in net profit at ₹273.5 crore for the second quarter that ended September 30, 2023.

In the corresponding quarter last year, Tamilnad Mercantile Bank posted a net profit of ₹262 crore, the bank said in a regulatory filing.

Net interest income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays depositors, rose 4.8%, coming at ₹532.8 crore against ₹508.6 crore in the corresponding quarter of FY23.

The gross non-performing asset (GNPA) stood at 1.70% in the September quarter against 1.56% in the June quarter. Net NPA came at 0.99% against 0.66% quarter-on-quarter.

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The total business of the bank in the quarter stood at ₹85,092 crore with a growth rate of 9.07%. The bank's advance portfolio stood at ₹37,778 crore respectively. The bank's deposits have increased to ₹47,314 crore in the second quarter of this fiscal over ₹43,137 crore in the corresponding period in the previous fiscal.

The Return on Asset was at 1.89% and the Return on Equity stood at 15.01% for the second quarter. The bank's net worth increased to ₹7,384 crore in the second quarter of this fiscal over ₹6,461 crore in the corresponding period in the previous fiscal, with an absolute rise of ₹923 crore at a growth of 14.29%.

advances to the priority sector have increased to ₹28,198 crore compared to ₹25,079 crore in the corresponding period in the previous fiscal, with a growth rate of 12.44%. The bank's advances to the agriculture sector stood at ₹12,752 crore.

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The advances to the agriculture sector constitute 33.76% of total advances, above the regulatory requirement of 18%. The credit to the MSME sector has increased to ₹13,132 crore compared to ₹12,690 crore in the corresponding period in the previous fiscal, with a growth rate of 3.49%.

The results came after the close of the market hours. Shares of Tamilnad Mercantile Bank Ltd ended at ₹569.30, up by ₹15.65, or 2.83%, on the BSE.