Tamilnad Mercantile Bank Reports 4.7% Rise in Q2 Net Profit, Two Directors Complete Tenure

Tamilnad Mercantile Bank (TMB) has reported a 4.7% increase in net profit for the second quarter of the financial year 2025-26, alongside changes in its board composition. The bank's financial performance and governance updates highlight its steady growth and adherence to regulatory requirements.

Financial Performance

TMB's financial results for Q2 FY2025-26 show a modest improvement in profitability:

Particulars (₹ in lakhs)	Q2 FY2025-26	Q2 FY2024-25	YoY Change
Net Profit	31,751.00	30,318.00	4.7%
Operating Profit	45,243.00	46,520.00	-2.7%
Total Income	162,146.00	156,488.00	3.6%
Net Interest Income	59,713.00	59,606.00	0.2%

The bank's net profit for the quarter ended September 30, 2025, stood at ₹31,751.00 lakhs, up from ₹30,318.00 lakhs in the same quarter of the previous year. This represents a year-on-year growth of 4.7%. The total income for Q2 FY2025-26 increased by 3.6% to ₹162,146.00 lakhs, compared to ₹156,488.00 lakhs in Q2 FY2024-25.

Asset Quality and Capital Adequacy

TMB's asset quality showed improvement:

Gross Non-Performing Assets (NPA) ratio decreased to 1.01% as of September 30, 2025, from 1.37% a year ago.
Net NPA ratio improved to 0.26%, down from 0.46% in the previous year.
The Provision Coverage Ratio (PCR) strengthened to 74.36% without technical write-off.

The bank maintains a robust capital position with a Capital Adequacy Ratio of 30.96% under Basel III norms, well above the regulatory requirements.

Board Changes

TMB announced the completion of tenure for two Non-Executive Directors:

Thiru S.R. Ashok (DIN – 07933713)
Thiru D.N. Nirranjan Kani (DIN – 00455352)

Both directors completed their eight-year tenure as per Section 10A(2A) of the Banking Regulation Act, 1949, and ceased to be directors effective October 27, 2025.

Other Key Highlights

The bank's advances grew by 10.5% year-on-year to ₹4,658,982.00 lakhs.
Deposits increased by 12.3% to ₹5,542,076.00 lakhs compared to the previous year.
Return on Assets (ROA) for Q2 FY2025-26 stood at 1.85%.

TMB continues to maintain a provision of ₹25,000.00 lakhs to address any potential impact from the COVID-19 pandemic, demonstrating a cautious approach to risk management.

The bank's performance reflects its ability to navigate challenging market conditions while maintaining growth in key areas. The improvement in asset quality and strong capital position provide a solid foundation for future growth initiatives.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+1.59%	+2.30%	+8.11%	+2.73%	+5.94%	-10.27%

Tamilnad Mercantile Bank Limited (TMB) has announced a significant addition to its senior management team. The bank has appointed Davis Jose Thettayil as the Head of Information Technology, taking on the role of Executive Vice President. This strategic move, effective from October 15, 2025, aims to bolster the bank's technological capabilities and drive its digital initiatives forward.

Key Appointment Details

Aspect	Details
Name	Davis Jose Thettayil
Position	Head of Information Technology (Executive Vice President)
Effective Date	October 15, 2025
Term	3 years

Extensive Experience in Banking Technology

Thettayil brings a wealth of experience to his new role at TMB. With a career spanning three decades in the banking sector, he has developed expertise in several crucial areas:

Information and Communication Technology
Digital Banking
Data Science
Banking Operations

His proficiency extends to the evaluation and procurement of vendor-supplied software solutions and the necessary IT infrastructure. Notably, Thettayil's ability to work effectively with both executive and technical teams positions him well to bridge the gap between strategic decision-making and technological implementation.

Implications for Tamilnad Mercantile Bank

This appointment signals TMB's commitment to enhancing its technological capabilities. In an era where digital transformation is reshaping the banking landscape, Thettayil's extensive experience is expected to play a crucial role in:

Advancing the bank's digital banking initiatives
Improving operational efficiency through technology
Enhancing data-driven decision-making processes
Strengthening the bank's IT infrastructure and security

The appointment of Davis Jose Thettayil as the IT head comes at a time when banks are increasingly focusing on technological advancements to stay competitive and meet evolving customer expectations. His leadership in the IT department is likely to be instrumental in shaping TMB's technological strategy and execution in the coming years.

Tamilnad Mercantile Bank's decision to bring on board a seasoned professional like Thettayil underscores the growing importance of technology in the banking sector and the bank's proactive approach to staying at the forefront of digital innovation.