Tamilnad Mercantile Bank Ltd

- Tamilnad Mercantile Bank currently has a strong Capital Adequacy Ratio (CAR) of 32.71%, which is well above regulatory requirements. - Due to this strong capital position, the management does not foresee the need for raising fresh equity or debt in the foreseeable future. - The bank’s focus is on using existing capital to fund growth rather than seeking external capital through equity infusion or bond issuance. - While capex and investments in technology and branch modernization will continue, these are expected to be fully funded internally, primarily loaded in the current financial year. - Overall, no immediate plans for new fundraising through debt or equity have been indicated by the bank’s management.

- Significant capex ramp-up in IT and branch infrastructure expected to continue this year (FY26), following INR 155 crores spent on IT last year. - Investments include modernization of branch physical appearance and digital banking services revamp, especially internet banking overhaul. - Focus on digital transformation via implementations like loan origination system (LOS), loan management system (LMS), business rule engine for credit decisioning, and lead tracking system. - Capex aimed at reducing operational costs and enhancing customer onboarding, especially for loans below INR 50 lakhs. - Plans to reorient at least 50 branches into ESG (Elite Services Group) branches focusing on high net worth individuals. - No significant equity raising anticipated due to strong capital adequacy ratio (CAR at 32.71%). - Capex to mainly conclude by FY27, seeing FY27 as the year for realizing benefits from these investments.

- Business growth for FY26 is expected at 13% to 14%. - Deposit growth forecast: around 11% to 12%. - Advances growth projected between 15% to 18%. - Digital channel business currently very low (2%-3%) but expected to increase significantly with new digital onboarding and credit decisioning systems rolling out by Q2 FY26. - Expansion plan includes opening at least 50 new branches in FY26, with about half outside Tamil Nadu, aiming to reduce Tamil Nadu branch share from 75% to 60% over 3 years. - Continued initiatives in HR and technology aimed at improving productivity and growth. - Profit growth targeted at 10% to 12% for the current year, with stronger growth expected in FY27 due to benefits from recent initiatives. - NIM guidance maintained at 3.8% to 3.9%.

- FY25 net profit growth: 10% to 12%, around INR1,183 crores (highest ever). - FY26 growth guidance: Business growth of 13%-14%, deposit growth around 11%-12%, advances growth 15%-18%. - Net profit growth for FY26 expected slightly better than FY25, not exceeding 15%. - Earnings per share (EPS): INR74.68 as on FY25, all-time high. - FY27 viewed as the key year for profitability growth with full benefits from initiatives maturing. - Initiatives include branch modernization, IT upgrades, verticalized business model for improved productivity. - Cost-to-income ratio expected to remain below 50%. - NIM guidance for FY26: 3.8% to 3.9%, factoring possible 50 bps cut. - Positive outlook on GNPA with major NPA accounts provided fully; maintaining asset quality. - ROE expected near 14% in FY25, improving by FY27 but 18% ROE anticipated only beyond FY27.

The transcript from Tamilnad Mercantile Bank Limited's Q4 FY25 earnings call does not specifically mention the current or expected order book or pending orders. The discussion primarily focuses on: - Business growth, advances, deposits, and digital initiatives. - Advances growth forecast of 15% to 18% for the coming year. - Deposit growth forecast of 11% to 12%. - Strategic initiatives like branch expansion and automation. - Capital adequacy ratio at a comfortable 32.71%. - Focus on improving credit decisioning through technology. There is no direct reference to any order book or pending orders in the document provided.