Tamilnad Mercantile Bank Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Tamilnad Mercantile Bank Ltd filed with BSE on 30 Apr 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Tamilnad Mercantile Bank reported FY26 results with net profit up 28.01% year-on-year to Rs 373.65 crore, advances growth of 20.32% and CASA growth of 22.35%, exceeding the guidance management had given after Q3. Management said net interest margin for the quarter was 4.18%, GNPA stood at 0.73% and net NPA at 0.18%, with asset quality improving across the year. Management also described branch expansion, digital transformation initiatives, and provided segment-wise return on assets for retail, agri and MSME advances for the first time.
Numbers mentioned
Net profit: INR373.65 crores (FY26)
p. 4
“Net profit is INR373.65 crores, which is 28.01% year-on-year.”
Salee Nair, page 4 of the filed PDF · View the filing
Net interest margin: 4.18% (Q4 FY26)
p. 4
“For the quarter, the net interest margin, 4.18%.”
Salee Nair, page 4 of the filed PDF · View the filing
CASA growth: 22.35% (FY26)
p. 4
“CASA stands at INR17,365 crores, that is of 22.35% year-on-year growth.”
Salee Nair, page 4 of the filed PDF · View the filing
Total business: INR1,15,091 crores (as of 31st March '26)
p. 4
“Your total business is at 17.37% and total business aggregates on 31st March '26 to INR1,15,091 crores, and against our guidance for the year of 15%.”
Salee Nair, page 4 of the filed PDF · View the filing
Advances growth: 20.32% (FY26)
p. 4
“The advances, we said, we would be in the 16% to 17%, we ended up at 20.32%.”
Salee Nair, page 4 of the filed PDF · View the filing
Return on assets: 2.05% (Q4 FY26)
p. 4
“ROA, where we had given a guidance of 1.85% plus, as these are at actually 2.05%”
Salee Nair, page 4 of the filed PDF · View the filing
Return on equity: 15.03% (Q4 FY26)
p. 4
“ROE, where we said will be 14% plus, we have actually able to break the 15% mark, and it is at 15.03%.”
Salee Nair, page 4 of the filed PDF · View the filing
CASA share: 28.14% (as of 31st March '26)
p. 4
“CASA share had touched 26.44% on 31st of March '25. It is up 1.7% now to 28.14%.”
Salee Nair, page 4 of the filed PDF · View the filing
GNPA: 0.73% (as of 31st March '26)
p. 4
“GNPA, as a consequence of the kind of efforts we have taken is at 0.73%, and net NPA is at 0.18% and SMA, I'm including SMA-0, 1 and 2 is at 1.29%.”
Salee Nair, page 4 of the filed PDF · View the filing
On-book PCR: 74.89% (as of 31st March '26)
p. 4
“the PCR on-book PCR is 74.89%.”
Salee Nair, page 4 of the filed PDF · View the filing
Cost-to-income ratio: 44.80% (FY26)
p. 4
“The cost-to-income ratio is at 44.80%.”
Salee Nair, page 4 of the filed PDF · View the filing
Capital adequacy ratio: 33.73% (as of 31st March '26)
p. 8
“the capital adequacy is 33.73%, again thanks to the fact that our risk-weighted assets are just about INR20,000 crores.”
Salee Nair, page 8 of the filed PDF · View the filing
Book value per share: INR638 (FY26)
p. 6
“Book value per share is INR638, earnings per share is INR23.60”
Salee Nair, page 6 of the filed PDF · View the filing
Dividend: 125% (FY26)
p. 4
“the Board also has declared or rather recommended a dividend of 125% for FY '26.”
Salee Nair, page 4 of the filed PDF · View the filing
Gold loan portfolio LTV: 53.25% (as of 31st March '26)
p. 5
“The portfolio LTV is just 53.25% as of 31st of March '26.”
Salee Nair, page 5 of the filed PDF · View the filing
MSME advances growth: 14.88% (FY26 year-on-year)
p. 5
“MSME, if you recall, has been degrowing until as late as the first quarter of FY26. It has now turned around and has delivered a 14.88% growth Y-o-Y.”
Salee Nair, page 5 of the filed PDF · View the filing
Retail gold loan portfolio: INR6,507 crores (Q4 FY26)
p. 10
“And to answer you on the retail, it is INR6,507 crores.”
Salee Nair, page 10 of the filed PDF · View the filing
Branches opened: 44 branches (FY26)
p. 8
“We have been able to open only 44 branches, 15 of them have been opened outside the state of Tamil Nadu”
Salee Nair, page 8 of the filed PDF · View the filing
Written off amount: INR149.69 crores (FY26)
p. 13
“we have written off INR149.69 crores.”
Salee Nair, page 13 of the filed PDF · View the filing
Net worth: above INR10,000 crores (FY26)
p. 4
“the shareholder funds after the results is above INR10,000 crores with a book value of INR638”
Salee Nair, page 4 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Deposit growth — at least 16% · FY27
stated firmly by Salee Nair
p. 9
“I think that we should be in the 16% kind of number for deposit growth.”
Salee Nair, page 9 of the filed PDF · View the filing
Advances growth — around 20% · FY27
stated firmly by Salee Nair
p. 9
“And that the advances that we did of 20% is something that we will defend in the current year as well.”
Salee Nair, page 9 of the filed PDF · View the filing
Net interest margin — 3.9% to 4% · FY27
stated conditionally by Salee Nair
p. 16
“But still, we believe we'll be able to defend a 3.9% to 4% NIM.”
Salee Nair, page 16 of the filed PDF · View the filing
Branch additions — 60 branches · FY27
stated firmly by Salee Nair
p. 12
“We are proposing 60 branches in FY27.”
Salee Nair, page 12 of the filed PDF · View the filing
Cost-to-income ratio — below 50%, in the 46%-47% range
stated firmly by Salee Nair
p. 19
“we are committed to keep it below 50% and should be in the 46%, 47% range.”
Salee Nair, page 19 of the filed PDF · View the filing
Return on assets — 1.9% to 2% · FY27
stated conditionally by Salee Nair
p. 18
“we are still looking at a 1.9% to 2% kind of ROA for FY27.”
Salee Nair, page 18 of the filed PDF · View the filing
Return on equity — 14% to 15% · FY27
stated conditionally by Salee Nair
p. 18
“I think we should be looking at defending 14% to 15% for FY27.”
Salee Nair, page 18 of the filed PDF · View the filing
Operating profit — INR500 crores plus quarterly · Q1 FY27 and sequential quarters
stated firmly by Salee Nair
p. 20
“INR500 crores of operating profit will certainly be defended.”
Salee Nair, page 20 of the filed PDF · View the filing
CASA ratio
stated as an aspiration by Salee Nair
p. 18
“28.14% is something that you will see moving up.”
Salee Nair, page 18 of the filed PDF · View the filing
Deposit repricing benefit — Q1 FY27
stated conditionally by Salee Nair
p. 16
“we don't expect that pricing benefit to really accrue to us in this quarter, which means that we may have to have to continue contracting term deposits.”
Salee Nair, page 16 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management guided to deposit growth of about 16% and said advances growth of around 20% achieved in FY26 would be defended in FY27.
Answered by Salee Nair
Asked by Digant Haria: What is the loan book growth guidance for FY27 given macro headwinds from the Middle East crisis?
p. 9
“we are saying that in FY27, we will grow at least 1% higher than what we did in FY26.”
Salee Nair, page 9 of the filed PDF · View the filing
Management said MSME would be the next growth driver, citing 14.88% year-on-year growth and improving systems.
Answered by Salee Nair
Asked by Digant Haria: What will be the growth driver (Dhurandhar) for FY27 after gold loans drove FY26?
p. 10
“which means to answer you, Dhurandhar 2 is going to be MSME.”
Salee Nair, page 10 of the filed PDF · View the filing
Management explained it was a single account related to an agri processing unit that was downgraded as a precaution despite being serviced, with expected recovery in Q1 FY27.
Answered by Management
Asked by Varun: Why did agri slippages rise by around INR19 crores?
p. 11
“in fact the slippage in agri. This is in the sense agri processing unit. And there was a single account, totalling INR16 crores and that has resulted in INR19 crores.”
Management, page 11 of the filed PDF · View the filing
Management said they are targeting 60 new branches in FY27.
Answered by Salee Nair
Asked by Varun: What is the branch addition target for FY27 after missing the 50-branch target in FY26?
p. 12
“We are proposing 60 branches in FY27.”
Salee Nair, page 12 of the filed PDF · View the filing
Management clarified the Andhra account was not part of the write-off, and detailed the two tranches of write-offs.
Answered by Salee Nair
Asked by Lakshmi Narayanan: What is the write-off amount this year and does it include the Andhra account?
p. 13
“we have written off INR149.69 crores. It is not part of it, the one you are referring to. It is a series of accounts. It has been written off in two lots, like I said, INR66 crores in quarter 2 and INR83 crores in quarter 4.”
Salee Nair, page 13 of the filed PDF · View the filing
Management said MSME ROA would likely decline as the portfolio expands, but overall ROA for FY27 is expected in the 1.9% to 2% range.
Answered by Salee Nair
Asked by Darshan Deora: What ROA target should be assumed for FY27 given the push into MSME growth?
p. 18
“ROA in MSME advances from 2.58% that we have showcased is going to come down. Certainly going to come down.”
Salee Nair, page 18 of the filed PDF · View the filing
Management said any moderation in gold loan growth would be offset by improvement in MSME, car loan and housing loan growth.
Answered by Salee Nair
Asked by Sarvesh Gupta: If gold prices don't rise further, what advances growth can be expected given ~72% of FY26 growth came from gold loans?
p. 21
“whatever gold loan degrowth or the moderation in the I don't expect a degrowth, but the moderation in the growth that will happen once your gold loan prices stabilize will be we are confident that can be made up through improvement in the MSME growth.”
Salee Nair, page 21 of the filed PDF · View the filing
Management said around 8% of high-cost deposits would be repriced by Q1 but the benefit may not fully accrue due to competitive resource mobilization pressures.
Answered by Salee Nair
Asked by Parth Gutka: What proportion of deposits are yet to reprice?
p. 16
“I think by the first quarter, our original high what we have taken is 8% will be fully repriced.”
Salee Nair, page 16 of the filed PDF · View the filing
Risks flagged
Exposure to West Asia crisis affecting export credit
p. 6
“On the export credit, I think West Asia crisis, we have our own exposure to the West Asian countries, it's just 50.95%, which is just 10 basis of our overall portfolio.”
Salee Nair, page 6 of the filed PDF · View the filing
Gold price volatility affecting loan portfolio value
p. 10
“So we want to be prepared because we did see a slight price coming down as a consequence of the initial stage of the war.”
Salee Nair, page 10 of the filed PDF · View the filing
Cybersecurity threats from increased digital and IT investment
p. 17
“we have to be vary cyber fraud, cyber-attacks, etcetera.”
Salee Nair, page 17 of the filed PDF · View the filing
Rising inflation and hardening interest rates affecting nominal GDP growth and banking sector
p. 20
“there could be a bit of hardening here. And when the inflation is taken, the nominal GDP growth is something that we need to watch, and that's going to have a direct impact on the banking industry as well.”
Salee Nair, page 20 of the filed PDF · View the filing
Industry-wide deposit mobilization challenges limiting repricing benefit
p. 16
“having said that, deposit is a challenge for all the across the industry.”
Salee Nair, page 16 of the filed PDF · View the filing
MSME expansion likely to reduce portfolio ROA
p. 18
“MSME advances once you start expanding the MSME advances, you may have to cannibalize a bit of your ROA.”
Salee Nair, page 18 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.