Tamilnad Mercantile Bank Completes Postal Ballot Process with Shareholder Approval

Tamilnad Mercantile Bank (TMB), a prominent player in the Indian banking sector, has successfully concluded its postal ballot process with shareholders approving key corporate governance resolutions through remote e-voting.

Postal Ballot Results Declaration

On December 29, 2025, TMB officially declared the results of its postal ballot process to the stock exchanges. The bank informed both NSE and BSE that all resolutions outlined in the postal ballot notice dated November 19, 2025, have been passed by shareholders with the requisite majority.

The resolutions were deemed passed on December 28, 2025, marking the successful conclusion of the remote e-voting period that began on November 29, 2025.

Key Approved Resolutions

Shareholders approved two significant corporate governance matters:

Director Appointments

The appointment of two Non-Executive Non-Independent Directors received shareholder approval:

Director Details:	Information
Directors:	S.R. Aravind Kumar and R. Kodeeswaran
Term Duration:	Three years
Service Period:	November 19, 2025 to November 18, 2028
Director Type:	Non-Executive Non-Independent

Articles of Association Amendments

Shareholders also approved amendments to the bank's Articles of Association, aimed at aligning the governance structure with current regulatory requirements and ensuring compliance with banking and corporate governance norms.

E-voting Process Details

The bank successfully conducted the voting process through remote e-voting mechanism:

Voting Timeline:	Details
E-voting Start Date:	November 29, 2025
E-voting End Date:	December 28, 2025
Results Declaration:	December 29, 2025
Voting Method:	Remote e-voting only

Regulatory Compliance

The results declaration was made in compliance with Regulation 44(3) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Company Secretary and Compliance Officer Swapnil Yelgaonkar signed the official communication to the exchanges, ensuring proper regulatory adherence.

Financial Foundation

These governance changes come at a time when TMB has demonstrated solid financial performance. The bank's recent financial metrics show:

Financial Metric:	Value (₹ crore)	YoY Change
Total Assets:	66,449.90	+7.96%
Shareholders' Capital:	9,008.70	+13.73%
Current Assets:	7,039.10	+12.52%
Investments:	15,100.80	-1.06%

The successful completion of this postal ballot process strengthens TMB's governance framework and positions the bank for continued growth. The approval of new directors and updated Articles of Association demonstrates shareholder confidence in the bank's strategic direction and commitment to maintaining high corporate governance standards.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+3.87%	+9.25%	+4.03%	+24.72%	+24.66%	+9.06%

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:

Standardization: Ensures a uniform approach across all loan categories.
Transparency: Enhances end-to-end visibility in the loan approval process.
Compliance: Improves adherence to regulatory requirements.
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:

Financial Metric	Current Year (2025-03)	1 Year Ago (2024-03)	Change
Total Assets	Rs. 66,449.90 crore	Rs. 61,552.50 crore	7.96%
Current Assets	Rs. 7,039.10 crore	Rs. 6,256.10 crore	12.52%
Investments	Rs. 15,100.80 crore	Rs. 15,262.60 crore	-1.06%
Total Equity	Rs. 9,008.70 crore	Rs. 7,921.20 crore	13.73%

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

Strategic Implications

Customer-Centric Approach: The new system is designed to enhance overall customer experience by providing faster credit decisions.
Competitive Edge: By reducing loan processing time, TMB positions itself to compete more effectively in the rapidly evolving banking sector.
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.