Tamilnad Mercantile Bank Ltd(TMB)

NSE: TMBBSE: 543596

₹ 797.25-5.31%refreshed 23 Oct, 03:30 pm ISTMarket cap: ₹ 12,625 crNext results: 26 Oct 2026Website: www.tmb.inUpdated: 24 Oct 2026

About

Tamilnad Mercantile Bank (TMB) is a private sector bank headquartered in Thoothukudi, Tamil Nadu, primarily serving retail, MSME and agri customers across South India. In Q1 FY27 total business reached ₹1,21,715 Cr, growing 23% YoY - the highest growth in the bank's last 14 years. The FY25 annual report marked 103 years since the bank was established and claims a strong market share in southern Tamil Nadu districts including Thoothukudi, Virudhunagar, Kanyakumari, Madurai and Tenkasi.^[1][2]

Business segments

Retail Banking contributed 72.2% of revenue (₹4,833.98 Cr) in FY26, with an EBIT margin of 27.8%.^[3]
Treasury contributed 19.1% of revenue (₹1,280.75 Cr) in FY26, with an EBIT margin of 23.4%; its revenue share contracted 0.4 percentage points over FY2023 - FY2026.^[3]
Corporate/Wholesale Banking contributed 8.7% of revenue (₹581.76 Cr) in FY26, with an EBIT margin of 27.8%.^[3]
RAM (Retail, Agri, MSME) portfolio represented 94.59% of gross advances as of Q2 FY26, up from 92.34% YoY.^[4]

Loan book and deposits

Provisional total business reached ₹1,30,261 Cr as of 30 Sep 2026 (Q2 FY27), up 27.27% YoY; advances ₹60,715 Cr, deposits ₹69,546 Cr, CASA ₹17,629 Cr.^[5]
Gross advances grew 27.01% YoY in Q1 FY27; total deposits grew 19.71% YoY to ₹64,409 Cr in Q1 FY27.^[1]
Gold loan book stood at ₹24,790 Cr (46.44% of gross advances) as of Q4 FY26; the bank's board-approved internal cap is 50% of advances.^[6]
MSME advances grew 20.09% YoY to ₹16,155 Cr in Q1 FY27, accelerating from 14.88% YoY in Q4 FY26.^[1]
Vehicle loans grew 25.7% YoY in Q1 FY27; personal (retail) gold loan book grew 60%+ YoY as of Q3 FY26.^[1]
Non-callable term deposits rose 18.44% QoQ in Q1 FY27; 80.39% of the deposit book is of ≥1-year tenure.^[1]
In FY25, retail term deposits were 89.04% of term deposits and bulk deposits 10.96%.^[2]

Key operating metrics

CASA ratio was 26.16% in Q1 FY27 (-62 bps YoY), down from 28.14% in Q4 FY26, as the bank favoured term deposit growth.^[1]
GNPA fell to 0.69% in Q1 FY27 (-53 bps YoY), from 0.73% in Q4 FY26 and 1.25% a year earlier; NNPA at 0.17%.^[1]
Credit cost was 0.09% in Q1 FY27 (-3 bps YoY); PCR (with technical write-off) at 96.04%; slippage ratio at 0.08%.^[1]
Cost-to-income ratio fell to 39.10% in Q1 FY27 (-1,005 bps YoY), from 44.80% in Q4 FY26.^[1]
Capital adequacy ratio (CRAR) stood at 32.33% in Q1 FY27, down from 33.73% in Q4 FY26.^[1]
ROA reached 2.14% in Q1 FY27 (+32 bps YoY); ROE at 15.93% (+263 bps YoY).^[1]

Gold loan portfolio

Gold loan portfolio LTV stood at 53.25% (net weight basis) as of Q4 FY26, which the bank says can absorb up to a 25% fall in gold prices before collateral coverage is impaired.^[6]
Gold loan yield was 10.11% in Q4 FY26; the bank raised gold loan yields ahead of expected term deposit rate hardening, lifting yield on advances to 10.54% in Q1 FY27.^[6]

Branch network and distribution

628 branches as of Q1 FY27 (30 Jun 2026), including 171 outside Tamil Nadu; 6 branches added in Q1 FY27 (3 in TN, 3 outside TN).^[1]
As of FY25 the bank also had 1150 ATMs, 380 cash recycler machines and 124 e-lobbies, covering 17 states and 4 union territories.^[2]
New branches contributed 15% of incremental business growth in FY26; per-branch business of new branches doubled to ₹40.16 Cr from ₹19.57 Cr in FY25.^[6]
Digital transactions were 96.85% of all transactions in FY26 (vs 95.69% in FY25); manual counter transactions fell from 26.3 million to 24.1 million despite 44 new branches.^[6]
A Global NRI Centre was set up in Kochi around August 2025; NRI deposits rose about 9% as of Q2 FY26.^[4]
In FY25 the bank had correspondent relationships with 328 overseas banks; export income was 1.40% of total income; branches linked to the Forex Processing Centre rose to 525 from 469.^[2]
As of FY25 the bank had four currency chests (Chennai, Podanur, Madurai, Thoothukudi Pudukottai); its financial inclusion programme covered 142 villages with 1.50 lakh basic savings accounts.^[2]

Technology and operations

IT spend budgeted at ₹280 Cr for FY27 (vs ₹250 Cr in FY26): new software/enhancements 35%, infrastructure 21%, cybersecurity 10%, others 35%.^[1]
Loan Management System Phase 1 went live on 27 Nov 2025; Phase 2 was targeted for Q1 FY27 to enable system-led MSME underwriting.^[7]
Digital Engagement Hub (revamped internet banking) was in UAT as of Feb 2026, with launch targeted by 14 Feb 2026; Phase II expected in Q3 FY27.^[7]
Primary data centre is in Chennai and the disaster recovery site in Bengaluru (FY25).^[2]
82% of about 5,000 employees have moved to a CTC model with variable pay linked to operating profit, reducing fixed pension obligations.^[4]

Expansion plans

60 new branches planned for FY27, 20 of them outside Tamil Nadu; 6 opened in Q1 FY27. Long-term target: non-TN branch share above 35% within five years.^[1]
A new branch was scheduled to open in Kadambur, Thoothukudi District on 12 Oct 2026; two branches opened in Coimbatore district on 30 Sep 2026.^[8]

Regulatory and shareholding developments

Expected Credit Loss provisioning starts 1 Apr 2027; the extra requirement was estimated at ₹324 Cr as of 30 Jun 2026, of which TMB has set aside ₹276 Cr (85%), with about ₹48 Cr to be absorbed in FY28.^[1]
Mutual fund holding in TMB rose from 0% in Jun 2025 to 0.577% in Jun 2026; FPI holding rose from 4.576% to 6.730% over the same period.^[1]
TMB ESOP Plan 2024, approved by shareholders in March 2025, was yet to be implemented as of the FY25 annual report.^[2]

Market Cap

₹12,625 Cr

High / Low

₹955 / 446

Stock P/E

8.7

Price / Book

1.3

Book Value

₹628

EPS

₹84.5

No. of Shares

15.84 Cr

ROE

14.0%

Sales

₹5,819 Cr

Net Profit

₹1,338 Cr

Loading chart…

Signal history

AI Deep Dive

The analysis Screener can't give you

Our models read the latest earnings call, annual report, and financials end-to-end - then grade management, value the business, and flag the risks. Unlock all of it for this company:

Verdict
The headline call - descriptive label, conviction, and the synthesis behind it.
Valuation
Guidance-anchored P&L bridge - worst / average / best multiple cases.
Walk the talk
Did management deliver on past guidance? A commitment-by-commitment scorecard.
Red flags
Forensic and governance risk pointers, severity-ranked.
Balance sheet
Solvency and earnings-quality score.
Concall briefs
Quarter-by-quarter earnings-call briefs - what changed and why.

₹49 unlocks this company for 90 days, ₹299 for a full year - bundles bring it lower. Built on public disclosures - educational, not investment advice.

AI Deep Dive

Verdict

Locked

The headline call - descriptive label, conviction, and the synthesis behind it.

Company data

Financials

Tamilnad Mercantile Bank Ltd(TMB)

About

Business segments

Loan book and deposits

Key operating metrics

Gold loan portfolio

Branch network and distribution

Technology and operations

Expansion plans

Regulatory and shareholding developments

Signal history

The analysis Screener can't give you

AI Deep Dive

Verdict

Company data

Product Segments

Corporate Actions