Tamilnad Mercantile Bank's chief executive Salee S Nair said on Tuesday that while there is no current foreign investor interest in the bank, "nothing can be ruled out for the future," a significant statement as foreign capital increasingly targets India's mid-sized banks.
The comments from the managing director and CEO Salee come on the back of Emirates NBD's recent move to acquire a controlling stake in rival RBL Bank - a landmark deal that has put in focus India's mid-sized banks.
"No foreign interest coming in now. But nothing can be ruled out for the future," Nair told in a post-earnings conversation with NDTV Profit.
Tamilnad Mercantile Bank, a 104-year-old establishment, reported strong September growth for the financial year ending 2026.
"This quarter’s highlight is the growth we have achieved," he said. "Growth, at 11.4% for the quarter and deposits, which was a concern for many in the past, is up 12.32%. So that’s a number we’re quite proud of."
For the second quarter of fiscal year 2026, TMB posted a 4.7% rise in net profit to Rs 318 crore, compared to Rs 303 crore in the same period last year.
The bank’s asset quality improved to its best level in a decade. Gross Non-Performing Assets (GNPA) fell to 1.01% from 1.22% in the previous quarter. Net NPAs also improved to 0.26%.
Net Interest Margins (NIMs), on the other hand, remained largely stable at 3.83%. Salee S Nair claimed that the bank does not "expect NIM to go down further."
Provisions saw a sharp year-on-year decline to Rs 20 crore, as the bank continues to hold Rs 250 crores in provisions.
Tamilnad Mercantile Bank, which operates 600 branches across 17 states, aims to sustain its GNPA near the 1% mark and expand its network to 700 branches by fiscal year 2027.
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