Tamilnad Mercantile Bank Reports Flat Q3 FY24-25 Results Amid Declining NPAs

Tamilnad Mercantile Bank has recently reported its financial results for the quarter ending December 2024, revealing a flat performance for Q3 FY24-25. The bank's evaluation has undergone a notable adjustment, with its score reflecting a shift from 9 to 4 over the past three months.
On a positive note, Tamilnad Mercantile Bank has achieved its lowest Gross Non-Performing Assets (NPA) ratio in five quarters, recorded at 1.32%. Additionally, the Net NPA has also reached a low of 0.41%, indicating a consistent decline in stressed loans over the same period. The bank's Profit Before Tax less Other Income (PBT) has shown a strong performance, reaching Rs 215.52 crore, which marks a growth of 21.2% compared to the average PBT of the previous four quarters.

However, challenges remain, particularly with the high proportion of Non-Operating Income, which constitutes 46.71% of the PBT. This reliance on income from non-business activities raises concerns about the sustainability of the bank's financial model.

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