Shares of Tamilnad Mercantile Bank (TMB) rose by about 6% on August 5 as investors reacted positively to the bank’s strong first-quarter results.
TMB reported a 10% increase in net profit, reaching Rs 287.29 crore, thanks to higher net interest income (NII). This is the bank’s highest ever net profit.
The net interest income, which is the difference between the interest the bank earns and what it pays, grew by 8% year-over-year to Rs 174.8 crore in the first quarter of FY25.
At 10:24 am, TMB shares were trading 4.6% higher at Rs 472 on the National Stock Exchange (NSE). Despite this, the stock has fallen around 6% since the start of the year, while the benchmark Nifty index has gained about 14%.
Additionally, TMB has sent four new names to the Reserve Bank of India (RBI) for the roles of managing director (MD), chief executive officer (CEO), and executive director (ED). This comes after the RBI rejected the bank’s previous list of candidates, saying they were not suitable.
The new list includes former officials from state-run banks like State Bank of India (SBI) and Indian Bank for the MD and CEO positions. For the executive director role, candidates with experience in private banking are being considered.
Last April, the RBI asked TMB to provide a new list of candidates with the right experience after rejecting their earlier list. In September last year, S. Krishnan resigned as MD & CEO after the bank mistakenly credited Rs 9,000 crore to a cab driver in Chennai.
Disclaimer: The views and investment tips expressed by investment experts on Sharepriceindia.com are their own and not those of the website or its management. Sharepriceindia.com advises users to check with certified experts before taking any investment decisions.
