TMB reports flat net profit in Q4 FY24

CHENNAI: Tamilnad Mercantile Bank (TMB) on Monday posted a flat net profit at Rs 253 crore in the quarter ended March 31, 2024 against the corresponding quarter last year on the back of provisions for increase in employees’ salary.
On a sequential basis, the private sector bank’s net profit dropped by around 11% when compared to Rs 284 crore during the third quarter of FY24.The operating profit also dipped by 9% at Rs 367 crore in Q4 FY24, which was at Rs 404 crore during the year ago quarter.
However, the bank recorded its highest ever net profit Rs 1,072 crore for the whole year in 2023-24, registering the growth rate of 4.2% over 2022-23.
TMB MD & CEO S Krishnan said the bank made a provision of nearly Rs 28 crore towards the possible increase in the employees’ wages during the fourth quarter of FY24.
“It is one of the major reasons for the reduction. The other one pertains to an NPA, where we have decided as a matter of prudence, that we will make a full provision and it also came to Rs 13-14 crore, So, all this have resulted in adding a flat profit in Q4 (FY24),” he told reporters through a virtual press conference.
While the slippage ratio decreased to 0.16% in Q4 FY24 from 0.21% in the corresponding quarter last year, the net NPA stood at 0.85% during the last quarter of 2023-24. “The slippage ratio in Q4 2023-24 is the lowest in the past four quarters of FY24,” he added.
On an annual basis, the CASA increased by Rs 940 crore to Rs 14,676 crore as on March 31, 2024 against Rs 13,736 crore in FY23, while the advances grew by 6.3% and stood at Rs 39,970 crore in the fiscal end of FY24.