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.

Tamilnad Mercantile Bank Limited (TMB) has announced the appointment of two new Additional Non-Executive Non-Independent Directors to its Board, subject to shareholder approval. The decision was made during a Board meeting held on November 19, 2025.

Key Appointments

The bank has appointed Thiru S.R. Aravind Kumar and Thiru R. Kodeeswaran for three-year terms, commencing from November 19, 2025. Both appointments are subject to shareholder approval.

Director Profiles

Thiru S.R. Aravind Kumar

• Background: Holds a degree in Engineering (B.E.) and an MBA specializing in Marketing
• Experience: Comes from a well-known business family with a strong background in IT and marketing
• Current Role: Manages dealership businesses of several well-known FMCG brands
• Previous Association: Served as a Director of TMB from November 2009 to October 2017

Thiru R. Kodeeswaran

• Education: Postgraduate in Commerce
• Business Association: Belongs to the business house VVD and Sons Private Limited, engaged in manufacturing and trading of FMCG products
• Expertise: Vast experience in managing diversified business portfolios and divisions, including shipping business
• Current Roles:
  • Director at VVD and Sons Private Limited, leading the export division
  • President of Indian Chamber of Commerce and Industry, Thoothukudi

Appointment Details

The bank has confirmed that neither of the appointed directors is related to any existing director of the bank, and they are not debarred from holding directorship positions by SEBI or any other authority.

These appointments are expected to bring valuable expertise to TMB's board, with Kumar's background in IT and marketing, and Kodeeswaran's experience in FMCG manufacturing and export business. The diverse skill sets of the new directors align with the bank's strategy to strengthen its governance and expand its business horizons.