Tamilnad Mercantile Bank posts 27 pc growth in profit

The newly-listed Tamilnad Mercantile Bank on Thursday posted a 26.63 per cent growth in its net profit to Rs 497 crore for the quarter ended September 30, against Rs 392 crore in the year-ago period.

The Bank's total business went up 7.43 per cent to Rs 78,013 crore, against Rs 72,620 crore in the corresponding quarter the previous year. The Thoothukudi-headquartered bank made its debut with a minor discount of nearly 3 per cent against its issue price on.

The bank's IPO price range is from Rs 500-525, with a miminum order quantity of 28 and its listing date September 15, 2022. Earlier in September, the IPO of Tamilnad Mercantile Bank was subscribed 2.86 times at the end of the scheduled three-day window. The portion reserved for the retail investors was subscribed 6.48 times, data showed. On the second day itself, the overall issues on offer were fully subscribed.

The current account saving account of the Bank grew 15.33 per cent to Rs 13,193 crore from Rs 11,439 per cent in the year-ago period whereas operating profit surged 10.84 per cent to Rs 764 crore from Rs 689 crore in the reviewed quarter in the previous year.

Its gross non-performing assets decreased 43.25 per cent to Rs 593 crore from Rs 1,045 crore in the year-ago period while its net NPA declined 47.61 per cent to Rs 296 crore from Rs 565 crore in the corresponding period in the previous year.

Tamilnad Mercantile Bank's total number of branches stood at 509 as of March 31, 2022. Of these 106 branches were in rural, 247 in semi-urban, 80 in urban and 76 in metropolitan centres.

Being one of the oldest private sector banks in India, it offers a range of banking and financial services primarily to micro, small and medium enterprises, agricultural and retail customers.The shares of the Bank were trading at Rs 522.05 a piece in the afternoon on Thursday on BSE.

( With inputs from ANI )

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