Tamilnad Mercantile Bank Ltd

- FY27 is expected to be a better year than FY26, with confidence based on completed and ongoing initiatives such as HR transformation, automation, and IT upgrades (Page 22). - Operating profit of INR 500 crores per quarter is targeted to be defended in FY27 (Page 20). - The bank aims for at least 20% advances growth in FY27, similar or better than FY26, despite macroeconomic challenges (Pages 20, 9). - Cost-to-income ratio is committed to remain below 50%, trending around 46-47%, supporting profitability (Page 19). - Net Interest Margin (NIM) is expected to be defended around 3.9%-4%, though sustaining peak margins may be difficult (Page 16). - ROA and NIM might moderate slightly but expect stable operating profit levels (Page 19). - EPS growth anticipated, supported by advances growth, improved productivity, and diversification beyond gold loans into MSME, car, and housing loans (Pages 9, 22).

- The orderbook/pipeline specifically related to the bank's growth focus, especially on MSME (Micro, Small, and Medium Enterprises), is actively being developed. - Saket Kapoor inquired about the nature of the bid pipeline with a focus on MSME growth as a lever moving forward. - Salee Nair responded affirmatively, indicating confidence in the MSME segment firing well, suggesting a promising pipeline. - The bank is also exploring growth in car loans and housing loans, which are beginning to gain traction. - No exact quantitative figure for the current or expected orderbook/pending orders was disclosed. - The growth leverage is expected from diversification beyond gold loans, with strong emphasis on MSME and other retail loan segments. In summary, while exact orderbook numbers are not provided, the bank expresses confidence in a strong pipeline, particularly driven by MSME, car loans, and housing loans.

- There is no explicit mention of any current or future fundraising plans through debt or equity in the provided transcripts. - The focus appears to be on organic growth, improving operational efficiency, and leveraging internal initiatives such as HR transformation, automation, and branch expansion. - The bank is committed to deposit growth of around 16% and plans to grow advances by about 20%, indicating reliance on internal resource mobilization rather than external fundraising. - The discussion emphasizes maintaining a cushion in investments and improving profitability without specifically referring to raising new capital through equity or debt issuance. - Succession planning and cybersecurity investments are highlighted, but these are funded through operational budgets rather than external fundraising. Hence, based on the available information, Tamilnad Mercantile Bank Limited does not currently indicate plans for new fundraising through debt or equity.

- The bank has undertaken significant IT and digital initiatives, including automation and the launch of the LMS loan management system Phase 1 and a revamp of the digital engagement hub. - Technology spend increased by 15.80% year-on-year and involves milestone payments; specific capitalization details were not provided. - There's ongoing investment in cybersecurity with 24/7 monitoring, AI-based call center, and partnerships with leading global cybersecurity firms. - Branch expansion is active: 44 branches opened in FY26 (short of the 50 target), with plans to refurbish some branches to modernize them and enhance resource mobilization. - These branch refurbishments and IT investments imply capital expenditure spread over FY27 and FY28. - Despite increased spending, the bank is committed to keeping cost-to-income ratio below 50%, targeting around 46-47% in the medium term. - All initiatives aim at improving productivity, growth, and competitiveness for FY27 and beyond.

- FY27 growth expected to be better than FY26, with confidence due to completed initiatives in HR, automation, digital, and IT. - Targeting 20% growth in advances, driven by non-gold loan segments like MSME (14-15% growth expected), car loans, and housing loans. - Gold loan growth expected to moderate due to stable gold prices; MSME and retail segments expected to offset this. - Deposit growth target for FY27 is around 16%. - Branch expansion planned with 60 new branches in FY27, up from 44 in FY26. - Overall ROA targeted at 1.9%-2% and ROE defended in the 14%-15% range. - Cost-to-income ratio expected to remain below 50%, around 46%-47%. - Operating profit of INR 500 crores per quarter expected to be sustained or defended in FY27.