Investor Presentation

Here's a concise summary for retail investors: Tamilnad Mercantile Bank delivered a strong performance in Q4FY26 & FY26! 🚀 **1. Business Performance:** Net Profit surged 28.01% YoY in Q4 to ₹373.65 Cr, with full-year FY26 profit at ₹1,337.55 Cr (+13.10% YoY). Total business crossed ₹1,15,091 Cr (+17.37% YoY). Advances grew robustly by 20.32% YoY to ₹53,379 Cr, fueled by a stellar 62.33% jump in Retail advances.

Deposits also saw strong growth of 14.94% YoY to ₹61,712 Cr.

Asset quality improved significantly, with GNPA hitting a 40-quarter low of 0.73% and NNPA at 0.18%, reflecting effective credit management. **2. Growth Drivers or Strategy:** FY26 was a "year of transformation," laying a solid foundation.

The bank expanded its footprint with 44 new branches (15 outside Tamil Nadu) and 12 new credit centers.

Digital transformation is nearing completion, driving efficiency with 96.85% digital transaction share.

Efforts to boost CASA and overall deposit growth have yielded positive momentum. **3. Recent Developments:** Key IT initiatives like Oracle Fusion implementation for HR/operations and new Loan Management Systems are actively progressing, enhancing operational capabilities. **4. Key Financial Metrics:** Net Interest Margin (NIM) expanded to 4.18% (+27 Bps YoY). ROA stood at 2.05%, and ROE at 15.03%. Earnings Per Share (EPS) for FY26 increased to ₹23.60. The Cost-to-Income ratio improved to 44.80%. A dividend of 125% has been proposed for FY26. **5. Management Commentary / Outlook:** Management is focused on building on this strong foundation, aiming for continued growth, enhanced asset quality, and further digital modernization to drive shareholder value.