Analysts/Institutional Investor Meet/Con. Call Updates

Secretarial Section Head Office, 57- V.E. Road, Thoothukudi – 628 002. ☏: 0461-2325136 e-mail : secretarial@tmb.bank.in CIN: L65110TN1921PLC001908 Ref.No.TMB.SE.88/2026-27 29.10.2026 The Manager The Manager National Stock Exchange of India Limited, BSE Limited, Exchange Plaza, 5th Floor, Plot No. C/1, Phiroze Jeejeebhoy Towers, 'G' Block, Bandra - Kurla Complex, Dalal Street, Bandra (East), Mumbai - 400 051. Mumbai – 400 001. Ref: Symbol: TMB / Scrip Code: 543596 Dear Sir/Madam, Sub: Transcript of the Earnings Conference Call – Q2 Results Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform that the transcript of the earnings conference call hosted by the Bank on the Unaudited Financial Results of the Bank for the quarter and half year ended September 30, 2026, has been made available on the Bank’s website at the following link: Transcript of the Earnings Conference Call – Q2 Results We are also enclosing the transcript of the earnings call with this intimation. Kindly take the information on record. Yours faithfully, For Tamilnad Mercantile Bank Limited Swapnil Yelgaonkar Company Secretary & Compliance Officer Tamilnad Mercantile Bank Limited Q2 and FY 2026-27 Earnings Conference Call – Transcript October 26, 2026 Management: Mr. Salee S Nair, Managing Director & CEO Mr. Sanjoy Kumar Goel, Chief Financial Officer Page 1 of 15 Tamilnad Mercantile Bank Limited October 26, 2026 Moderator: Ladies and gentlemen, good day, and welcome to the Q2 and H1 FY27 Earnings Conference Call hosted by Tamilnad Mercantile Bank Limited. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectation of the company as on date of this call. These statements are not the guarantee of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. On the call today, we have the following management representatives: Mr. Salee S. Nair, Managing Director; Mr. Sanjoy Kumar Goel, Chief Financial Officer. I now hand the conference over to Mr. Salee S. Nair, Managing Director from Tamilnad Mercantile Bank Limited. Thank you, and over to you, sir. Salee S. Nair: Thank you. Thank you very much, and thanks for attending this con call from Tamilnad Mercantile Bank. And I'm sure most of you would have already seen our results on the website and on the exchanges. The quarterly performance has been as anticipated. We have been maintaining the trend of growth that we delivered last quarter. We have actually exceeded that, and this is something that we have been doing it quarter after quarter for the past 7 quarters. I think it's the 8th quarter where we have exceeded our previous performance. And to delve into some of these highlights, very clearly, the growth has accelerated and the profit is at record level. And when we look at the business growth itself, the total business grew 27.25% year-on-year, which is almost 3x our own 10-year CAGR of 9.41%. So, this CAGR is also moving up on the basis of the rising growth. And this growth is highest year-on-year growth in the last 18 years. So, that's something that we are fairly proud of. And it's also 8% faster than the industry. So, the delta today in terms of growth is 8% over the industry's growth that TMB has delivered. And this growth has driven a strong net profit, the highest ever, INR451 crores highest ever net profit. And that net profit has come out of the core business growth. These are not on account of exceptional results, largely driven by the core business, by a very strong net interest income. Apart from that, let me also say that the strength that we are adding to the balance sheet in terms of other measures, one of them we have taken based, looking forward into the ECL norms that will come on the 1st of April 2027. We have, in anticipation, provided fully for SMA 1 and SMA 2 as per ECL norms. If that's something that we have done this quarter, if you recall, in quarter 1 of the current year, FY27, we had also provided fully for the stressed non-fund facilities. So, that was last quarter, this quarter, SMA 1 and SMA 2, we have fully provided as per ECL norms. Page 2 of 15 Tamilnad Mercantile Bank Limited October 26, 2026 And of course, NPA, the gross and net, continues to decline. The net NPA is at 0.14%. The capital adequacy is at 32.39%. The balance sheet has also moved up quite sharply by 24.49% year-on-year. And this has resulted in the overall growth and the profit has resulted in an ROE of 16.92%, quarterly earnings per share is at INR28.49 and the shareholders' fund is today 12.53% of the balance sheet. Just to give you a little more color on the numbers itself, the total business stands at INR1,30,237 crores is up 27.25% and contributed by deposits growing at 25.49%, which stands today at INR69,546 crores and advances up 29.32%, standing at INR60,691 crores. CASA grew about 16.26%, RAM at 28.96%, and on the earnings side, as I said that the profit has been delivered on a strong net interest income, the net interest income for the quarter stands at INR807 crores, up INR35.17 crores. The operating profit after expenses is INR642 crores, up 41.80%. As I said earlier, the net profit is record, the highest ever this bank has clocked at INR451 crores, up 42.09% year-on-year. And ROA, the return on assets, stands at 2.18%. ROE, 16.92%. So, that's where we stand. Of course, when you look at the cost to income, it is 38.28%. That's where it stands as on 30th of September. The unsecured exposure is bare 20 basis points. Our RAM focus continues. It stands at 94.33%. The net interest margin is year-on-year up 36 basis, stands at 4.19%. Sequentially, it stands at we have lost 10 basis. It was 4.29% for and I did explain why it was 4.29% last quarter in the last con call. Profit per employee stands at almost INR35 lakhs, and that is up 36.45%. Gross NPA 0.61% and net NPA is 0.14%. The credit cost is at 9 basis points, 0.09%, and the slippage is again 6 basis points. But this year, on book PCR is 77.49% and the overall PCR is at 96.61%. SMA 0, 1, 2, I repeat, it is 0 included SMA 0, 1, 2 is at 1.67%, which is that if you look at your NPA 0.61% and SMA of 1.67%, your portfolio at risk one day today, 30th of September, was at 2.28%. As I said earlier, the stressed NFB, we have provided 100% and SMA 1 and 2, we have also provided 100% as per the ECL norms. So, just to run through some of the numbers. CASA 16.26% is the growth. Term deposit, the total deposit growth of 25.49% has been driven by the term deposits, which stands at almost 29%. And if you look at the number itself, I think the non-callable deposits' share in the incremental term deposits, incremented term deposit for the half year stands at INR7,570 crores, 40.62% of that came in the form of noncallable deposits. As you're aware, noncallable deposits are deposits which cannot be paid before the maturity. So, there's no prepayment of that. So, from that perspective, the deposit mix resource security that much more stronger. FCNR (B), we did about USD51.94 million, not something that we can write home about. So overall, the FCNR (B)deposit growth has been 47.14%. So, it should not be one of the better Page 3 of 15 Tamilnad Mercantile Bank Limited October 26, 2026 stories that we want to put on the table is just about USD51.94 million. And the advances 29.32%, riding on the RAM. If you look at the MSME, as I promised, has inched up and today stands at 23.62%. We also had; I think there's a lot of talk going on the gold loan portfolio. The gold loan portfolio, we have [Showing first 8,000 characters — download PDF for full document]