Tamilnad Mercantile Bank Ltd

- There is no mention of any current or future new fundraising through debt or equity in the provided transcript. - The bank seems focused on organic growth through deposits and advances, emphasizing improving CASA, MSME loan growth, and operational efficiency. - Litigation related to shares is ongoing but is stated not to impact the bank financially or its capitalization. - The bank highlights strong capital adequacy (over 32%) and no indication of capital raising needs. - Overall, the management did not indicate any plans for new debt or equity fundraising during the call.

- The bank is undertaking significant IT-related capex, contracting and implementing multiple software packages: - Customer Experience (CX) package by Oracle implemented in early July 2025 to improve customer interactions and impact CASA. - Vendor Management System (VMS) package implemented in July with INR 1,200 crore spent to run the bank. - Software investments are capitalized over a 3-year period, with depreciation impacting P&L gradually. - Loan Management System (LMS) platform implementation is ongoing, with Phase 1 expected completion in September 2025 and Phase 2 by Q3 2025. This will help centralize MSME appraisal and credit management. - The bank is setting up new infrastructure including Global NRI Center and Credit Management Centers (CMCs) across 12 regions, with pilots already in progress. - Branch expansion continues with new branches and branch managers to support business growth. - Overall, capex is focused on IT systems, automation, and strategic infrastructure to enable future growth and operational efficiencies.

- Tamilnad Mercantile Bank expects overall advances growth of around 15% year-on-year, driven by MSME and gold loans. - MSME growth is anticipated to pick up to 8-10% in H2 FY26 after Phase 1 and Phase 2 of the Loan Management System (LMS) are implemented. - Retail advances growth is strong at 27.91% YoY, primarily driven by personal loans and gold loans; housing loans remain stable. - Deposit growth is targeted at 10-12%, with focus on ramping up CASA through transaction business units and elite RM groups. - The bank aims to sustain improvements in CASA ratio, seeing a 34 basis points increase in Q1 FY26. - The growth groundwork was laid in Q1 FY26; stronger momentum is expected from Q2 onwards as new systems and credit management centers become fully operational.

- Tamilnad Mercantile Bank expects 15% year-on-year growth in advances driven by MSME and gold loans (Page 8-9, 14). - MSME growth anticipated at 8-10% by Q4 after LMS implementation phases are completed (Page 14). - Deposits growth expected at 10-12% annually, supported by branch expansion and focused liability initiatives (Page 11-12). - Net interest margin (NIM) forecasted to stabilize or marginally improve to 3.85%-3.95% by year-end (Page 12). - Operating profit impacted in Q1 FY26 due to upfronting INR 41 crore performance-based incentive, a one-time effect; otherwise, profitability shows healthy growth (Page 14-15). - Net profit grew 6.13% year-on-year despite Q1 upfront expense impact (Page 3). - Cost-to-income ratio affected by one-off costs but normalized cost-to-income around 46% excluding Q1 adjustments (Page 15).

The transcript does not provide specific information about Tamilnad Mercantile Bank Limited's current or expected order book or pending orders. The discussion focuses primarily on: - IT and automation investments (e.g., Oracle CX package, vendor management system). - MSME loan portfolio growth and loan management system implementation. - CASA and deposit growth strategies. - Credit management center (CMC) pilot and planned expansion. - NPA, SMA definitions, and asset quality. - Branch expansion and deposit growth initiatives. - No mention of order book or pending orders was made in the provided pages. If you need details on order books or pending orders, they might not be included in this earnings call transcript.