Tamilnad Mercantile Bank has announced changes to its board composition following orders from the Reserve Bank of India (RBI). The central bank appointed R. Kannan as an Additional Director and extended the tenure of C.S. Ram Kumar for a further period of two years.

The appointments and extensions are effective from October 4, 2026, through October 3, 2028, or until further orders, whichever is earlier. These actions were taken under sub-section (1) of Section 36 AB of the Banking Regulation Act, 1949. The intimation was filed with stock exchanges on October 1, 2026, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Appointment details

The RBI order Ref.No.CO.HGG.DOR.No.S5255/08.55.001/2026-27 appointed R. Kannan, General Manager (Retired), Reserve Bank of India, as an Additional Director. He replaces Visvanathan Srinivasan, General Manager (Retired), Reserve Bank of India, who ceases to be a director effective October 4, 2026.

Kannan holds a postgraduate degree in Commerce (M.Com) and is a Certified Associate of the Indian Institute of Bankers (CAIIB). He brings over 36 years of experience with the RBI, having last served in the Department of Supervision.

Tenure extension

Concurrently, the RBI order Ref.No.CO.HGG.DOR.No.S5245/08.55.001/2026-27 extended the tenure of C.S. Ram Kumar, General Manager (Retired), Reserve Bank of India, as an Additional Director for another two years. Ram Kumar possesses more than 32 years of experience in central banking, with expertise in supervising non-banking financial companies, payment systems, and foreign exchange operations.

Committee memberships

Both directors will serve on key board committees, ensuring continuity in oversight functions:

• Audit Committee of the Board
• Special Committee of the Board for Monitoring and Follow-up of Cases of Frauds
• Risk Management Committee of the Board

The bank confirmed that neither Kannan nor Ram Kumar has any relationship with existing directors or key managerial personnel. They are also not debarred from holding office by any SEBI order.

Tamilnad Mercantile Bank reported total business of ₹1.30 lakh crore in Q2FY27, rising 27.27% YoY and 7.02% QoQ.

Business performance highlights

The bank's advances grew 29.37% YoY and 5.95% QoQ to reach ₹60,715 crore during the quarter, reflecting broad-based expansion across both annual and sequential periods.

Total deposits stood at ₹69,546 crore, registering a growth of 25.49% YoY and 7.98% QoQ. CASA balances increased to ₹17,629 crore, up 16.26% YoY and 4.61% QoQ.

The table below summarises the key business metrics reported for Q2FY27:

What the numbers show

The 29.37% YoY expansion in advances outpaced the 27.27% YoY growth in total business, indicating that the loan book grew at a faster rate than the overall business base during Q2FY27. The sequential gains of 7.02% in total business and 5.95% in advances further underscore the momentum sustained from the previous quarter.

Deposit growth of 25.49% YoY lagged behind advance growth of 29.37%, suggesting a tightening liquidity environment or a shift in funding mix. While CASA deposits grew 16.26% YoY, the slower pace compared to total deposits (25.49%) indicates a relative increase in term deposits as the bank funded its expanding credit book.