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.62/2026-27 30.07.2026 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 – Q1 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 ended June 30, 2026, has been made available on the Bank’s website at the following link: Transcript of the Earnings Conference Call – Q1 Results We are also attaching 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 Q1 and FY 2026-27 Earnings Conference Call – Transcript July 27, 2026 Management: Mr. Salee S Nair, Managing Director & CEO Mr. Vincent M D, Executive Director Mr. Sanjoy Kumar Goel, Chief Financial Officer Page 1 of 18 Tamilnad Mercantile Bank Limited July 27, 2026 Moderator: Ladies and gentlemen, good day, and welcome to the Q1 FY27 Earnings Conference Call hosted by Tamilnad Mercantile Bank Limited. As a reminder, all participants' lines will be in listen- only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. On the call today, we have the following management representatives: Mr. Salee S. Nair, Managing Director; Mr. Vincent Menachery Devassy, Executive Director; Mr. Sanjoy Kumar Goel, Chief Financial Officer. I now hand over the conference to Mr. Salee S. Nair, Managing Director from Tamilnad Mercantile Bank Limited. Thank you, and over to you, sir. Salee S. Nair: Thank you, Pari, and good evening to all of you, and welcome to this con call on the results of TMB for FY27 first quarter, Salee here. And just to take you through the highlights and the performance highlights. The quarter 1 of FY27 has been a good quarter for TMB, as you would have already seen the presentation that has been uploaded both in our site and the NSE and BSE sites. We have delivered as promised, we have exceeded the guidance as promised in the last con call in April. The growth is, if I look at it, we have delivered first quarter 23% growth business growth, total business growth of 23%, which is way, way higher than the 8.82% 10-year CAGR that this bank has delivered in the past. So, this is the highest growth in the last 14 years. It is 7% over the industry growth. And the growth, of course, has come and backed up by the growth has helped us deliver strong net interest income and the net profit, which is the highest ever in the bank, the bank's 105 years history. Credit cost continues to be under control. And for the first time in the history of this bank, we have fully provided for the non-fund based facilities. If you look at the provision that we have had for the quarter, a substantial amount is against non- fund based facilities where we are fully provided. We have provided almost INR26 crores there. Gross and net NPA percentage has continued to decline. And the capital adequacy is at 32.33%. It's one of the highest in the industry. And what this means for the shareholders, ROE, I think the second quarter when we have crossed 15% this quarter, FY27 first quarter, it is at 15.93% Quarterly EPS is INR25.99 per share. Market cap since the last call is up 20%. And the 20% was up to Friday, and you would have seen the price go up today, and this is not captured in this 20%. So, this has been a value-driven growth. And I'll come to that just in a bit. The total business increased 23%, as I just mentioned, to INR1,21,715 crores. Deposits, 19.71% up to INR64,409 crores. We will get a little more color on it as we go a little later. CASA is up 16.94% growth year-on-year. Advances 27.01%. And the RAM business, the advances retail, agri and MSME, is up 28.47%. So, all this has delivered good value for us. Page 2 of 18 Tamilnad Mercantile Bank Limited July 27, 2026 Net interest income, as I said earlier, is up 32.01% year-on-year. The operating profit is at INR611 crores, up 48.22%. Net profit is an all-time high, INR412 crores, up 34.97%. ROA is up 32 basis year-on-year, up from 1.82% to 2.14%. So the ROA, return on assets is at 2.14% for the quarter. And ROE, like I said earlier, is 15.93%, up 263 basis over quarter 1 of FY26. And if you delve a little deeper into it, CASA is at 26.16%. Unsecured exposure in the overall portfolio is just 10 basis points. Net interest margin, the net interest margin is up 45 basis year- on-year, and it is now stands at 4.29% for the quarter. Cost-to-income ratio well contained, below 40% at 39.10%. The credit cost continues to be under control, 9 basis points. And the credit like I said, the credit quality continues to be good. GNPA is 0.69%, down 53 basis year-on-year and NNPA is 17 basis, down 16 basis year-on-year. SMA is at 2.21 basis, again, down 84 basis and PCR is 96.04% total PCR and on book, it is at 75.36%. Now when you get into separately into the business performance, current account is up 16.28% though quarter-on-quarter, it is down 8.75%. I'll come to that a little later. CASA overall, it's 16.94%, I mentioned earlier, but quarter-on-quarter, because of current account degrowth of 8.75%, is down 2.95%. Term deposit has more than compensated that. In fact, it is up 20.73%. And overall, term deposits is up 19.71%. This particular quarter, we have been trying to secure our resource base in a big way, and that's getting reflected in the overall deposits of 19.71% and in particular, the term deposit of 20.73%. We have been focusing on the term deposit in the quarter, and that has, to some extent, cannibalized current account the CASA, which has, sort of, not really up to what we would have anticipated 2.95%. But when we look at it holistically, we have put that in Slide 10, while the degrowth in CASA is just about INR500 crores. The overall focus on the resource mobilization, the overall focus on deposits have yielded INR2,697 crores in the first quarter, which is a record deposit mobilization as compared to INR114 crores that we did in the same quarter last year. And to give you a little more color on it, the noncallable deposits quarter-on-quarter from the 31st of March '26 to 30th of June is up 18.44%. So that's again our focus on resource mobilization, our focus on seeing that the focus continues on within the resource mobilization, the non-callable deposits is up 18.44%. And such deposits, 80.39% are over 1 year and above tenure. So that's the other aspect. So we are trying to secure our growth strategy going forward. FCNR(B) deposits is also seeing some movement there, 11.03% as it has moved up quarter-on-quarter. And $10 million is what we have raised so far under the Special Forex Swap Facility of the RBI. Page 3 of 18 Tamilnad Mercantile Bank Limited July 27, 2026 So, there is some movement there. And like I said, overall, the focus has been on securing the resource base for the growth forward. And CASA, a small degrowth in CASA has been a consequence of it, which will more than make up hopefully in this quarter, which is quarter 2. On the Advances side, I think the RAM, as I said earlier, is up 28.47%. The growth is evident across retail, agriculture and MSME. MSME, in particular, has moved up 20.09% year-on-year. The others are at 6.69%. Again, a bi [Showing first 8,000 characters — download PDF for full document]