Investor Presentation

Tamilnad Mercantile Bank delivered strong Q1FY27 financial results for the quarter. **Business Performance:** Total business grew 23.04% YoY to ₹1,21,715 Cr, driven by advances up 27.01% YoY to ₹57,306 Cr, with RAM segments showing robust growth.

Deposits rose 19.71% YoY to ₹64,409 Cr.

Net Interest Income (NII) surged 32.01% YoY to ₹765 Cr, leading to a highest-ever Net Profit of ₹412 Cr, up 34.97% YoY.

Efficiency improved with Cost-to-Income Ratio at 39.10%. **Growth Drivers & Strategy:** The bank is expanding its 'Phygital' presence with 6 new branches and advancing digital initiatives, evidenced by 97.40% digital transaction share.

Significant tech investments include AI/ML analytics and UPI enhancements, building a future-ready bank.

Cost optimization also contributed. **Recent Developments:** A favorable resolution to a long-standing ED case reduced a penalty from ₹17 Cr to ₹3.40 Cr, with the bank expecting to receive ₹13.60 Cr.

Awards for tech and digital innovation were received. **Key Financial Metrics:** ROA stood at 2.14%, ROE at 15.93%, and CRAR was a strong 32.33%. EPS for the quarter was ₹25.99. Asset quality saw significant improvement with GNPA at 0.69% and NNPA at 0.17%. **Management Commentary:** Management highlighted strong risk management with 145.28% collateral for NPAs, expecting low losses.

Proactive provisioning for new ECL norms is largely covered.