Tamilnad Mercantile Bank Business Crosses ₹1.21 Lakh Crore in Q1 FY27; Advances Surge 27% YoY

Private sector lender Tamilnad Mercantile Bank Limited (TMB) has released its provisional business figures for the first quarter of the financial year 2026-27 ending June 30, 2026. The bank reported strong double-digit growth across its core metrics on a year-on-year (YoY) basis, driven by an accelerating credit engine that pushed its total business past the ₹1.21 Lakh Crore milestone.

Strong Top-line Momentum and Credit Growth

TMB's cumulative business mix registered solid annual growth during the opening quarter of the fiscal year:

Total Business: The total business mix scaled to ₹1,21,715 Crore, representing a robust expansion of 23.04% YoY over the ₹98,923 Crore reported in the same quarter last year. On a sequential (Q-o-Q) basis, business grew by 5.76% from the audited ₹1,15,091 Crore managed in March 2026.

Total Advances: Credit off-take acted as the primary growth lever, jumping 27.01% YoY to reach ₹57,306 Crore up from ₹45,120 Crore. TMB maintained strong sequential momentum in its lending vertical, recording a 7.36% bump over March 2026 figures.

Core Liabilities Expand Despite Sequential CASA Softening

The bank's deposit franchise continued its upward annual trajectory, though low-cost deposit mobilization faced subtle seasonal headwinds:

Total Deposits: Aggregate deposits grew by 19.71% YoY, landing at ₹64,409 Crore by June 2026 compared to ₹53,803 Crore in June 2025. This reflects a steady sequential build-up of 4.37% over the preceding quarter.

CASA Portfolio: Low-cost Current Account Savings Account (CASA) deposits expanded by 16.94% YoY to hit ₹16,852 Crore against ₹14,411 Crore last year. However, tracking the typical Q1 industry trend of seasonal liquidity outflux, CASA balances experienced a minor sequential contraction of 2.95% from the audited ₹17,365 Crore held at the close of March 2026.

The above data is subject to limited review by the Statutory Central Auditors of the Bank.

Shares of Tamilnad Mercantile Bank Limited was last trading in BSE at Rs. 730.00 as compared to the previous close of Rs. 733.25. The total number of shares traded during the day was 4736 in over 392 trades.

The stock hit an intraday high of Rs. 747.00 and intraday low of 727.20. The net turnover during the day was Rs. 3481523.00.

Source : Equity Bulls

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TamilnadMercantileBank INE668A01016 TMB PrivateBank BusinessUpdates Q1FY27