Tamilnad Mercantile Bank Limited · NSE:TMB

Tamilnad Mercantile Bank — Q2 FY2026 Earnings Presentation

34 slides from Tamilnad Mercantile Bank's earnings presentation, Sep 30, 2025

  1. Slide 1: Investor Presentation Q2 FY 2026

    Investor Presentation Q2 FY 2026

  2. Slide 2: Disclaimer

    Disclaimer This presentation has been prepared by Tamilnad Mercantile Bank Ltd., (“the Bank”) solely by the Bank for information purposes only. This presentation is not a complete description of the Bank, and the information contained herein is only current as of its date and has not been verified b

  3. Slide 3: Table of contents

    Table of contents Performance Highlights Phygital Expansion Business/Financial Performance Key Ratios/ Parameters P&L and Balance Sheet Asset Quality www.tmb.bank.in 3

  4. Slide 4: Expanding Our Footprint to Accelerate Growth…Opened the 600th Branch

    Expanding Our Footprint to Accelerate Growth…Opened the 600th Branch 600 578 441 425 153 159 As of 31.03.25 As of 27.10.25 Total Branches TN Branches Non-TN Branches ❖36 centers identified, ❖Branch Heads posted, ❖Branch opening in progress. www.tmb.bank.in 4

  5. Slide 5: Performance Highlights Q2 FY 2026

    Performance Highlights Q2 FY 2026

  6. Slide 6: Q2FY26 – Growth Accelerating

    Q2FY26 – Growth Accelerating… ❖ Highest year on year growth since listing 11.40% Total Business Growth ❖ Growth is ~3.5% higher than 9 CAGR, ~2.% higher than previous year Deposits Growth 12.32% ❖ Deposit growth momentum reinforcing CASA Growth 9.30% ❖ CASA trend reversed, share up by 58 Bps QoQ 10.

  7. Slide 7: Performance Highlights

    Performance Highlights (₹ in Crores) Particulars Q2FY25 Q1FY26 Q2FY26 QoQ YoY Total Business 91,875 98,923 1,02,351 3.46% 11.40% Deposits 49,342 53,803 55,421 3.01% 12.32% CASA 13,873 14,411 15,163 5.22% 9.30% ❖ LIFE’s Highest Net Profit Gross Advances 42,533 45,120 46,930 4.01% 10.34% ❖ Adjusted fo

  8. Slide 8: Business Financial Performance Q2 FY 2026

    Business Financial Performance Q2 FY 2026

  9. Slide 9: Deposits portfolio performance

    Deposits portfolio performance (₹ in Crores) Q-o-Q Y-o-Y Growth % Growth % Business Parameters Q2FY25 Q1FY26 Q2FY26 (Q2FY26 (Q2FY26 Over over Q1FY26) Q2FY25) Current Account 3,986 3,989 4,334 8.65% 8.74% Savings Bank Account 9,887 10, 422 10,829 3.90% 9.52% CASA 13,873 14,411 15,163 5.22% 9.30% Tota

  10. Slide 10: Deposits performance – Strategic initiatives driving growth

    Deposits performance – Strategic initiatives driving growth (₹ in Crores) Total Deposits Deposits YoY Growth (%) CASA (₹ in Crores) CASA Share (%) 55421 12.32% 15163 28.12% 53803 53689 27.36% 27.36% 14411 9.38% 14193 8.43% 7.68% 13873 50393 26.78% 13789 13788 26.44% 49342 49188 4.29% Transaction Bus

  11. Slide 11: Advances portfolio performance

    Advances portfolio performance (₹ in Crores) Q-o-Q Y-o-Y Growth % Growth % Business Parameters Q2FY25 Q1FY26 Q2FY26 (Q2FY26 (Q2FY26 Over over Q1FY26) Q2FY25) Gross Advances 42,533 45,120 46,930 4.01% 10.34% Of which Retail 8,477 10,661 11,878 11.41% 40.12% Agriculture 17,030 17,987 18,546 3.11% 8.90

  12. Slide 12: Advances performance

    Advances performance (₹ in Crores) (₹ in Crores) Gross Advances Advances YoY Growth (%) RAM RAM YoY Growth (%) 15.61% 13.71% 44392 14.62% 46930 12.59% 42100 13.19% 45120 13.02% 41297 11.00% 44366 10.45% 40329 10.34% 43650 11.93% 39277 42533 www.tmb.bank.in 12

  13. Slide 13: Unsecured Exposure

    Unsecured Exposure (₹ in Crores) Amount of Unsecured Exposure Amount of NPA in Unsecured % of Unsecured Exposure to % of NPA in Unsecured advances Exposure total advances 1.13% 0.33% 139.71 138.71 138.55 0.94% 1.48 1.32 0.31% (₹ in Crores) 131.17 (₹ in Crores) 0.30% 0.30% 0.43% 0.36% 125.13 0.54 0.5

  14. Slide 14: Industry wise exposure and USA tariff impact

    Industry wise exposure and USA tariff impact (₹ in Crores) (₹ in Crores) USA Tariff Impact Exposure Export Credit vs Share of Sectors As of 30.09.25 % to Advance USA bound Export Credit Textiles 2127.51 4.53% Food Processing 1037.71 2.21% USA bound 17.53% Chemicals 375.64 0.80% Basic Metal and Metal

  15. Slide 15: Slide 15

  16. Slide 16: Financial Performance

    Financial Performance (₹ in Crores) 3 Months 6 Months Y-o-Y Y-o-Y Financial Parameters Growth Growth Q2FY25 Q2FY26 (Q2FY26 H1FY25 H1FY26 (H1FY26 over Over Q2FY25) H1FY25) Recovery in written off a/c’s Interest Income 1337.41 1413.39 5.68% 2618.56 2799.63 6.91% (₹ in Crores) Non-Interest Income 227.4

  17. Slide 17: Strong Shareholder Value

    Strong Shareholder Value (in ₹) (in ₹) (₹ in Crores) Earnings Per Share Book Value Per Share Net Worth 9444 9328 596.38 20.05 589.09 568.90 19.25 19.15 18.96 9009 550.38 18.44 532.37 8715 ROA (%) ROE (%) 8430 14.83% 14.44% 1.94% 13.77% 1.89% 13.79% 1.85% 13.30% 1.82% 1.81% www.tmb.bank.in 17

  18. Slide 18: Balance Sheet

    Balance Sheet (₹ in Crores) Liabilities (₹ in Crores) As on As on As on As on Particulars 30.09.2024 31.03.2025 30.06.2025 30.09.2025 Capital 158.35 158.35 158.35 158.35 Reserves and Surplus 8271.89 8850.34 9169.92 9285.35 Deposits 49342.16 53688.96 53803.20 55420.76 Borrowings 1899.77 500.00 535.38

  19. Slide 19: Asset Quality Q2 FY 2026

    Q2 FY 2026

  20. Slide 20: Movement of NPA

    Movement of NPA (₹ in crores) Particulars Q2FY25 Q3FY25 Q4FY25 Q1FY26 Q2FY26 Opening Balance of Gross NPA 587.66 584.45 576.38 556.13 549.12 i)Cash Recovery 43.31 56.05 39.16 26.43 26.97 ii)Upgradation 21.43 5.87 9.95 2.62 4.34 iii)Write Off 1.50 0.00 25.59 0.00 66.02 Total Reduction* (i+ii+iii) 66.

  21. Slide 21: Asset quality

    Asset quality GNPA GNPA % NNPA NNPA % 1.37% 584.45 0.46% 194.77 576.38 1.32% 556.13 549.12 177.59 0.41% 1.25% 1.22% 160.45 0.36% 147.37 0.33% 474.45 121.52 0.26% 1.01% (₹ in Crores) (₹ in Crores) www.tmb.bank.in 21

  22. Slide 22: Slippage – under control

    Slippage – under control (₹ in crores) Fresh Slippage Slippage Ratio (%) 0.16% 0.13% 0.13% 63 54 54 ▼-64.05% YoY 0.05% 0.05% 22 23 Slippage in Retail Slippage in Agri Slippage in MSME Slippage in Others 9 13 35 7 32 20 29 6 19 3 15 10 3 2 2 6 1 0 3 0 (₹ in crores) (₹ in crores) (₹ in crores) (₹ in c

  23. Slide 23: SMA – Trending down

    SMA – Trending down (₹ in crores) (₹ in crores) (₹ in crores) (₹ in crores) SMA 0 SMA 1 SMA 2 TOTAL SMA 567 1771 714 537 1645 514 490 594 449 462 1378 537 424 1130 1252 379 373 455 326 355 SMA 0% on Gross Advances SMA 1% on Gross Advances SMA 2% on Gross Advances SMA Total on Gross Advances 1.23% 1.

  24. Slide 24: Stressed Assets – Declining trend continues…

    Stressed Assets – Declining trend continues… Stressed Assets Ratio (%) 2.42% 2.16% 2.01% 1.88% 1.59% (₹ in crores) Particulars Q2FY25 Q3FY25 Q4FY25 Q1FY26 Q2FY26 Standard Restructure advances 443.22 367.43 333.80 297.11 271.37 Gross NPA 584.45 576.38 556.13 549.12 474.45 Total Stressed Assets 1027.6

  25. Slide 25: Collateral Coverage Details as on 30.09.2025

    Collateral Coverage Details as on 30.09.2025 (₹ in Crores) Collateral Parameter Advances GNPA GNPA% Provision Coverage (NPA) Retail 11,877.66 27.78 0.23% 10.17 124.37% ❖ 111.09% average collateral available for NPA. Agriculture 18,546.25 36.15 0.19% 18.28 102.43% ❖ Portfolio expected loss to be low.

  26. Slide 26: Impact of new RBI draft guidelines on Expected Credit Loss

    Impact of new RBI draft guidelines on Expected Credit Loss Our Impact analysis suggest additional provisions Standard assets : ₹137 crore Current IRAC Norms Bad & doubtful assets : ₹324 crore Non-performing investment : ₹56 crore ❖ Currently maintaining ₹250 crores of provision for Total : ₹517 cror

  27. Slide 27: Key Ratios Parameters Q2 FY 2026

    Key Ratios Parameters Q2 FY 2026

  28. Slide 28: Key Ratios / Parameters (1/2)

    10.47% 5.90% 10.17% 5.97% 10.03% 6.01% 10.02% 6.01% Cost of Deposits (%) Yield on Advances (%) 9.97% 5.90% Key Ratios / Parameters (1/2) 9.53% 5.92% 9.34% 5.99% www.tmb.bank.in 9.24% 6.02% Cost of Funds (%) 9.17% 6.02% Yield on Funds (%) 9.07% 5.91% 4.25% 0.55% 4.00% 0.08% 3.91% 0.16% NIM (%) Credit

  29. Slide 29: Key Ratios / Parameters (2/2)

    Key Ratios / Parameters (2/2) Capital Adequacy (%) Cost to Income Ratio (%) 49.15% CET-1 CRAR 32.71% 47.42% 46.31% 31.55% 30.96% 43.81% 31.24% 43.51% 29.59% 29.35% 29.99% 29.40% 28.12% 27.88% PCR% With technical write-off PCR% Without technical write-off 95.30% 74.36% 94.32% 73.04% 93.86% 71.02% 93.

  30. Slide 30: Phygital Expansion Q2 FY 2026

    Phygital rH XPansSlon Q2 FY 2026

  31. Slide 31: Channel-wise Digital transaction trends

    Channel-wise Digital transaction trends Shift in customer behaviour TMB M-Bank usage trend Digital Vs Branch Volume (₹in crore) Volume vs Transaction count 11,913 Transactions count 14,000 65 Trnx count (in lakhs) 61 DIGITAL 12,000 10,615 10,960 60 20.00 97.00% 9,917 10,071 BRANCH 10,000 54 18.13 55

  32. Slide 32: Digital momentum – Strategic IT Initiatives

    Digital momentum – Strategic allocation Enhanced to ₹151.66 Crore ₹250.00 Crore IT Expenditure IT Budget for 2024-25 Capex ₹55.17 Crore & for 2025-26 Capex ₹125.00 Crore & Opex ₹96.49 Crore Opex ₹125.00 Crore Strategic IT Initiatives Loan Management Workflow Treasury Interactive Fintech Systems Auto

  33. Slide 33: ESG & CSR

    ESG & CSR Sponsorship of Para athlete to Partnership with IIT Madras Pravartak for CSR SPENDING BSFI Sector skill development Participate International Athletic Event in Dubai 9% 43% 48% Healthcare Education & Employment Environment Sponsorship of an Ambulance to Bellpins Indrani Sponsorship for Con

  34. Slide 34: Investor Relations Contacts

    Investor Relations Contacts Mr. Swapnil Yelgaonkar, Mr. Sanjoy Kumar Goel, Chief Financial Officer, Company Company Secretary & CFO Contact Compliance Officer, Mobile : 63852 28111 Secretary Mobile : 96595 23378 Email : cfo@tmbank.in Email : cs@tmbank.in Adfactors Pvt Ltd. Adfactors Mr. T.E. Narasim

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