Tamilnad Mercantile Bank Limited has announced the opening of four new branches across Tamil Nadu, marking a significant expansion of its retail banking network. The bank has informed stock exchanges about this development in compliance with regulatory disclosure requirements.

Branch Expansion Details

The bank filed a regulatory intimation under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, detailing the locations and operational timeline for the new branches.

Geographic Coverage

The new branches will strengthen the bank's presence across multiple districts in Tamil Nadu. The expansion covers:

• Mayiladuthurai District: Melaiyur branch on Poombuhar Main Road
• Pudukottai District: Ponnamaravathi branch on Puduvulavu Main Road
• Kallakurichi District: Chinna Salem branch on Salem Main Road
• Madurai District: Sholavandan branch on Railway Feeder Road

Regulatory Compliance

The bank's communication to stock exchanges was signed by Company Secretary & Compliance Officer Swapnil Yelgaonkar on 26.02.2026. The intimation was sent to both the National Stock Exchange of India Limited and Bombay Stock Exchange Limited, referencing the bank's trading symbol TMB and scrip code 543596.

Strategic Positioning

The branch locations appear strategically chosen along main roads and commercial areas, with the Melaiyur branch positioned on Poombuhar Main Road and the Chinna Salem branch on Salem Main Road. The Sholavandan branch will be located near Vattapillayar Kovil on Railway Feeder Road, indicating focus on areas with good connectivity and local significance.

Tamilnad Mercantile Bank conducted its Q3FY26 earnings conference call on February 04, 2026, following the announcement of its unaudited financial results for the quarter ended December 31, 2025. The call was hosted by Managing Director & CEO Salee S Nair, along with Executive Director Vincent M D and Chief Financial Officer Sanjoy Kumar Goel.

Performance Against Guidance

The management highlighted that the bank significantly exceeded its previous guidance across all key metrics. The total business growth reached 14.28%, surpassing the guided 12.40%. Deposits grew by 12.53%, CASA achieved 14.94% year-on-year growth against the targeted 12%, and advances expanded by 16.30%, beating the guidance of 14%-15%.

Key Financial Highlights

The bank reported its highest-ever quarterly net profit of ₹341.50 crores, representing a 13.74% year-on-year increase. Net interest income grew by 13.28%, while operating profit surged 14.84%. The Return on Assets improved to 1.97% from the FY25 full-year figure of 1.81%, and Return on Equity increased to 14.22% from 13.79% in FY25.

Asset Quality and Risk Management

Management emphasized the bank's strong asset quality metrics, with Gross NPA at 0.91% and Net NPA at just 0.20%. The Special Mention Accounts (SMA) portfolio stood at 2.24%, resulting in a total portfolio at risk of 3.15%. The Provision Coverage Ratio reached 96.08% including technical write-offs, well above the RBI's 70% target.

Business Expansion Strategy

The bank opened 36 new branches in the first 10 months of FY26, with 13 branches established outside Tamil Nadu. Management outlined plans to increase the non-Tamil Nadu branch ratio from the current 26% to 35% over the next five years, focusing on Kerala, Karnataka, Maharashtra, Gujarat, and Telugu states.

Technology and Digital Transformation

Significant IT investments totaling ₹250 crores are underway, with approximately half already deployed. The bank has implemented Oracle Fusion components, customer experience packages, and a revamped internet banking platform expected to launch by February 14, 2026. Digital transactions now account for 96.96% of all transactions.

Future Outlook

For FY26, management revised advance growth expectations to 16% plus, up from the earlier guidance of 14%-15%. The bank targets CASA growth exceeding 15% and total business growth of at least 15% plus for the full year. Management expressed confidence in maintaining asset quality below 1.25% and credit costs under 40 basis points in future periods.

Management Commentary

MD & CEO Salee S Nair stated that FY26 represents a transformational year for laying the foundation for future growth, with initiatives bearing fruit faster than anticipated. He emphasized that the bank's growth momentum is built on disciplined risk management and secured lending, with unsecured exposure at just 11 basis points of total advances.