Archive · 28 Oct 2025
Tamilnad Mercantile Bank Targets 14% Loan Growth Driven by MSME Expansion
Tamilnad Mercantile Bank (TMB) wants its loans to grow by 14% this year.
They plan to achieve this by lending more money to small and medium-sized businesses (MSMEs), which are called the backbone of the economy.
They also want to get more deposits from customers, aiming for 12-13% growth.
The bank recently reported that its profit for the last three months went up by almost 5% compared to last year, reaching ₹318 crore.
They also expect their earnings from loans (net interest margin) to increase slightly in the coming months.
While they have seen more people taking out loans using gold as collateral, they plan to reduce this type of lending.
The bank also mentioned a new rule called the ECL framework will require them to set aside more money, but they have enough existing funds to cover this.
Tamilnad Mercantile Bank (TMB) targets 14% loan growth for the current financial year, led by its MSME portfolio.
The bank aims for a deposit growth of 12-13% and a 12% increase in CASA deposits by fiscal year-end.
TMB's net profit for the quarter ended September was ₹318 crore, a 4.9% year-on-year increase.
Net interest income for Q2 was ₹597 crore, remaining nearly flat compared to the previous year.
The bank expects its Net Interest Margin (NIM) to rise to 3.85-3.90% in the upcoming quarters.
- Who
- Tamilnad Mercantile Bank (TMB)
- What
- Aims for 14% loan growth driven by MSME expansion and targets deposit growth of 12-13%. Reported net profit of ₹318 crore for Q2, up 4.9% YoY.
- When
- Current financial year, with Q2 results for the quarter ended September.
- Where
- India
- Why
- To expand its loan portfolio, particularly in the MSME sector, and improve net interest margins.
TMB Management Perspective
Market Response
Loan Growth Strategy
TMB Management Perspective
Tamilnad Mercantile Bank (TMB) aims for 14% loan growth in the current financial year, primarily by expanding its MSME portfolio. They anticipate at least 1-2% higher growth next year.
Market Response
The bank's shares closed 1.9% higher at ₹466 on the NSE following the announcement.
Net Interest Margin (NIM)
TMB Management Perspective
TMB expects its Net Interest Margin (NIM) to rise to 3.85–3.90% in Q3 and Q4, benefiting from the repricing of term deposits, assuming no further repo rate cuts by the RBI.
Market Response
N/A
- Target Loan Growth (FY)
- 14%
- Current Loan Growth (Sep)
- 10.34%
- Target Deposit Growth (FY)
- 12-13%
- Current Deposit Growth (Sep)
- 12.32%
- Target CASA Growth (FY)
- 12%
- Expected NIM
- 3.85-3.90%
- Net Profit (Q2)
- ₹318 crore (up 4.9% YoY)
- Net Interest Income (Q2)
- ₹597 crore
Sources
Sundaram Home Finance Q2 net up 69% at ₹75 crore
Tamilnad Mercantile Bank Q2 net profit up 4.7 at ₹317 crore
PNB Housing Finance Q2 profit rises 24% to Rs 582 cr
PNB Housing Finance Q2 net profit up 24%, brokerages bullish
Tamilnad Mercantile Bank business growth at decade-high on the back of transformation initiatives: MD & CEO
Sundram Fasteners Q2 consolidated net up 6%
Tata Capital PAT rises 11% Q-o-Q, AUM hits Rs 2.44 L cr
