Tamilnad Mercantile Bank reports a 10% rise in net profit for June quarter

economictimes.indiatimes.com:

Tamilnad Mercantile Bank reported a 10% rise in net profit for the June quarter at Rs 287 crore against Rs 261 crore in the year ago period even as it has increased provisions and contingencies.

The operating profit stood 23.4% higher at Rs 469 crore against 380 crore, supported by a 40% rise in non-interest income while net interest income was lower for the quarter at Rs 466 crore against Rs 514 crore in the year ago period.

The bank's net interest income for the quarter was however higher at 4.12% against 4% earlier. Provisions and contingencies stood higher at Rs 85 crore against Rs 39 crore even as gross non-performing assets fell to 1.44% at the end of June against 1.56% a year back.

The Tuticorin-headquartered bank, which is now being run by a committee of executives after the bank relieved managing director S Krishnan on June 8 from his duties, has grown advances by 9.6% year-on-year to Rs 40853 crore at the end of June. Deposits rose 4.6% to Rs 49188 crore.

Krishnan resigned in September last year citing personal reasons but had continued till June 8 as directed by the Reserve Bank of India. The bank has submitted a fresh list of candidates for the top position in June after the central bank rejected the first list.