Lower provisions helped Tamilnad Mercantile Bank report a 5% rise in second quarter net profit at Rs 318 crore as compared with Rs 303 crore in the year ago period.
Provisions and contingencies was lower at Rs 20 crore for the period under review while it was Rs 65 crore in the second quarter last year.
Pre-provision operating profit was lower at Rs 452 crore as compared with Rs 465 crore earlier, on account of rise in expenditure which offset the rise in income.
Total income stood at Rs 1622 crore as against Rs 1565 crore while total expenditure was at Rs 1169 crore against Rs 1100 crore.
The bank’s asset quality improved with gross non-performing assets ratio falling to 1.01% at the end of September from 1.37% a year back. Net NPA was at 0.26% against 0.46%.
