Tamilnad Mercantile Bank (TMB), a prominent player in the Indian banking sector, has recently issued a postal ballot notice to its shareholders. The notice outlines two significant corporate governance matters that require member approval:

Director Appointments

TMB is seeking shareholder approval for the appointment of two Non-Executive Non-Independent Directors:

1. S.R. Aravind Kumar
2. R. Kodeeswaran

Both directors are proposed to serve for a three-year term from November 19, 2025, to November 18, 2028. This move aligns with the bank's efforts to strengthen its board composition and bring in diverse expertise.

Amendments to Articles of Association

The bank is also seeking approval for amendments to its Articles of Association. These changes are aimed at aligning the bank's governance structure with current regulatory requirements, ensuring compliance with the latest banking and corporate governance norms.

Voting Process

TMB has set up a remote e-voting process for shareholders to cast their votes on these matters:

• E-voting Start Date: November 29, 2025
• E-voting End Date: December 28, 2025

This extended voting period allows ample time for shareholders to review the proposals and make informed decisions.

Financial Context

While these governance changes are being proposed, it's worth noting TMB's recent financial performance. As of March 2025, the bank reported:

The bank's total assets have grown by 7.96% year-over-year, indicating a steady expansion. The significant increase in shareholders' capital (13.73% YoY) suggests a strengthening equity position, which could provide a solid foundation for the bank's future growth initiatives.

Implications for Shareholders

These proposed changes, particularly the appointment of new directors and amendments to the Articles of Association, could have significant implications for the bank's future direction and governance practices. Shareholders are encouraged to carefully review the postal ballot notice and exercise their voting rights.

The bank's efforts to align its governance structure with regulatory requirements demonstrate a commitment to maintaining high standards of corporate governance, which could potentially enhance investor confidence and support long-term value creation.

As TMB continues to evolve and adapt to the changing banking landscape, these governance updates may play a crucial role in positioning the bank for sustainable growth and improved performance in the coming years.

Tamilnad Mercantile Bank (TMB) has taken a significant step towards digitizing its lending operations with the launch of a new Loan Origination System (LOS) called Finnone Neo. This move, coupled with the inauguration of its first Credit Management Centre (CMC) in Thoothukudi, marks a pivotal moment in the bank's efforts to enhance its loan processing efficiency and customer experience.

Key Highlights of the New Digital Platform

• Technology Partnership: TMB has collaborated with Nucleus Software, based in Noida, to implement this advanced loan processing system.
• Phased Rollout: The new system will be implemented over a six-month period, covering key loan categories including MSME, Agriculture, and Retail segments.
• Faster Loan Approvals: Once fully operational, the platform aims to process loan sanctions up to Rs. 50 lakh within 30 minutes through automated processes.
• Enhanced Efficiency: The new LOS integrates automated checks, digital workflows, and seamless internal connectivity to significantly reduce loan approval turnaround time (TAT).

Impact on Lending Operations

The implementation of Finnone Neo is expected to bring about several improvements in TMB's lending process:

1. Standardization: Ensures a uniform approach across all loan categories.
2. Transparency: Enhances end-to-end visibility in the loan approval process.
3. Compliance: Improves adherence to regulatory requirements.
4. Operational Efficiency: Enables the bank to handle higher loan volumes with improved efficiency.

Financial Context

To provide context for this technological investment, let's look at some key financial metrics of Tamilnad Mercantile Bank:

The bank's growing asset base and equity position suggest a solid foundation for technological investments aimed at improving operational efficiency.

Strategic Implications

1. Customer-Centric Approach: The new system is designed to enhance overall customer experience by providing faster credit decisions.
2. Competitive Edge: By reducing loan processing time, TMB positions itself to compete more effectively in the rapidly evolving banking sector.
3. Scalability: The digital platform equips the bank to manage higher loan volumes, potentially supporting future growth.

Future Outlook

TMB's Managing Director & CEO, Salee S Nair, highlighted that this is part of a broader initiative to embrace various technological advancements. The bank is also in the process of enhancing its Internet Banking and Customer Experience (CX) platform, indicating a comprehensive approach to digital transformation.

As the banking sector continues to evolve with technological advancements, TMB's investment in digital infrastructure positions it to meet changing customer expectations and regulatory requirements more effectively. The success of this initiative could set a precedent for similar moves by other regional banks looking to modernize their operations.