Tamilnad Mercantile Bank has released its provisional business figures for Q3 FY26 under SEBI LODR Regulations, demonstrating continued strong performance across key banking parameters. The private sector lender reported 14.28% year-on-year growth in total business to ₹1,07,470 crore for the third quarter ended December 31, 2025.

Q3 FY26 Business Performance Overview

The bank's business update shows robust growth momentum across all major business segments, with total business growing from ₹94,042 crore in the same quarter last year. Sequential growth was also strong at 4.93% from ₹1,02,417 crore in the previous quarter.

Credit Portfolio Expansion

The bank's lending portfolio showed particularly strong performance with total advances growing by 16.30% year-on-year to reach ₹50,763 crore. Sequential growth was equally impressive at 8.01% from ₹46,996 crore in the September quarter, reflecting the bank's effective lending strategies and robust credit demand in its operational markets.

Deposit Growth and CASA Performance

Total deposits increased by 12.53% year-on-year to ₹56,707 crore, with sequential growth of 2.32% from ₹55,421 crore in the previous quarter. CASA deposits demonstrated strong growth of 14.93% year-on-year, reaching ₹15,847 crore compared to ₹13,788 crore in the previous year, with quarterly growth of 4.51%. This improvement in CASA deposits indicates enhanced customer engagement and cost-effective funding.

Stock Performance and Recent Developments

The bank's shares are trading at ₹517.90 apiece, marginally higher by 0.80% than the day's opening. The company recently expanded its branch network by opening five new branches in Velandipalayam, Kalapatti, Davanagere, Puthukkadai, and Nikol. Additionally, the bank appointed Thiru S Balasubramanian, Deputy Vice President, as the data protection officer effective December 26, 2025.

Regulatory Compliance

The business update was communicated to both stock exchanges as part of the bank's obligations under SEBI regulations. Company Secretary & Compliance Officer Swapnil Yelgaonkar signed the regulatory filing, with the provisional figures subject to limited review by statutory central auditors.

Tamilnad Mercantile Bank has successfully launched an online collection facility for Employees' Provident Fund (EPF) payments through its Internet Banking platform. The facility features direct integration between the EPFO portal and TMB's Internet Banking application, marking an important milestone in the bank's digital transformation journey.

Launch Event and Key Attendees

The facility was formally launched at a function presided over by TMB's Executive Director, Shri Vincent Menachery Devassy. The event was graced by Chief Guest Smt. Kavitha N. George, Additional Central PF Commissioner, Chennai. Senior officials from the Employees' Provident Fund Organisation (EPFO), Delhi, including Shri A.K. Paliwal, Regional Provident Fund Commissioner, and Shri Kapil Anand, Accounts Officer, attended the event virtually along with senior TMB executives.

Key Features and Benefits

The new online EPF payment facility enables specific customer segments to remit EPF contributions digitally:

With this facility, eligible customers can remit EPF contributions, including monthly salary deductions of employees, directly through TMB Internet Banking without the need to visit bank branches. This digital solution addresses the needs of TMB account holders who were previously making EPF payments through other banks.

Strategic Digital Expansion

Executive Director Shri Vincent Menachery Devassy highlighted that TMB has already implemented online payment facilities for CBDT, GST, and ICEGATE. The addition of EPF payments further strengthens the bank's digital offerings and demonstrates its commitment to enhancing customer convenience through digital integration.

The bank plans to actively popularise this facility among customers and focus on increasing the number of EPF payments routed through TMB's platform.

Industry Impact and Future Outlook

Chief Guest Smt. Kavitha N. George emphasized the facility's benefits for TMB customers and highlighted the need to educate customers on using this digital facility. She stressed the importance of popularising EPF payment adoption among MSME customers, enabling more enterprises to remit EPF contributions for their employees through TMB Internet Banking.

About Tamilnad Mercantile Bank

Tamilnad Mercantile Bank Limited is one of the renowned Old Private Sector Banks with headquarters in Thoothukudi, Tamil Nadu. The bank has a history of over 100 years with strong fundamentals and a track record of continuous profit making in the industry. TMB maintains a Pan India presence with 601 branches and 12 Regional Offices across 17 states and 4 Union Territories, serving more than 5.30 million customers.