CASA Ratio
28.14%
+170bps YoY
CASA ratio improved from 26.44% in FY25, driven by current account growth of 25.62% and savings account growth of 21.04%.
TAMILNADMERCANTILEBANK
Financial Services
2026-04-??
Tamilnad Mercantile Bank Ltd — Q4 FY26
Tamilnad Mercantile Bank delivered a strong Q4 FY26, with net profit of ₹373.65 crore (up 28.01% YoY), driven by robust loan growth of 20.32% (22.57% including IBPC sales) and NIM expansion to 4.18%.
Financial stats pending filing verification
2-Minute Summary
✦ AI-Generated from Full Transcript
Tamilnad Mercantile Bank delivered a strong Q4 FY26, with net profit of ₹373.65 crore (up 28.01% YoY), driven by robust loan growth of 20.32% (22.57% including IBPC sales) and NIM expansion to 4.18%. CASA ratio improved to 28.14% (up 170bps YoY), and asset quality remained pristine with GNPA at 0.73% and NNPA at 0.18%. Management guided for FY27 loan growth of ~20% and deposit growth of ~16%, with ROA expected in the 1.9-2% range. Key risks include potential moderation in gold loan growth if gold prices stabilize, and margin pressure from rising deposit costs and MSME expansion.
Key Numbers
Gold Loan Portfolio LTV
53.25%
Flat
Portfolio LTV is calculated on net weight, providing a cushion to withstand a 25% gold price decline without stress.
SMA 0+1+2 as % of Advances
1.29%
-126bps YoY
SMA (special mention accounts) declined sharply, reflecting improving early-stage stress and portfolio quality.
Cost-to-Income Ratio (Normalized)
39.54%
Flat
Normalized for prepaid performance-based incentive of ₹49.80 crore, cost-to-income would be ~39.54%, indicating strong operating leverage.
Management Guidance
Loan growth of ~20% in FY27
Management expects to defend the 20% loan growth achieved in FY26, driven by MSME and retail segments, even if gold loan growth moderates.
Management guidance growthDeposit growth of ~16% in FY27
Deposit growth target is set at least 1% higher than FY26's 14.94%, with focus on CASA and term deposits.
Management guidance growthROA of 1.9-2% for FY27
Management guided for ROA in the 1.9-2% range, moderating from Q4's 2.05% due to expected margin normalization and branch expansion costs.
Management guidance marginsCost-to-income ratio to remain below 50%
Despite branch expansion and technology investments, management commits to keeping cost-to-income below 50%, targeting 46-47%.
Management guidance marginsKey Risks
Gold loan growth moderation
If gold prices stabilize, loan growth may slow; management expects MSME and other segments to compensate, but execution risk remains.
medium · analyst_questionMargin pressure from rising deposit costs
Deposit repricing benefits may be limited as industry competition keeps term deposit rates elevated, potentially compressing NIMs.
medium · management_commentaryWest Asia crisis impact on export credit
Direct exposure is minimal (0.10% of portfolio), but indirect effects on the economy and borrower health could increase stress.
low · management_commentaryECL implementation impact
New expected credit loss norms from April 2027 may require additional provisions; management expects ₹250 crore COVID buffer to largely offset the estimated ₹279 crore impact.
medium · management_commentaryNotable Quotes
We will grow the SCASA by 15%. In quarter 4 we have stated that the deposits growth will be in the 13 to 13.5%. Advances growth will be in 16 to 17%. Total business would grow 15% plus net interest margin will be 3.90 to 3.95%. ROA will be 1.85% plus and roe will be 14% plus and GNPA will be less than 1%.
The quarter also saw the highest deposit growth in last 39 quarters that is 10 years. It's the highest advanced growth recorded in the past 40 quarters.
We are still at a page where our own growth will not impact significantly the competition around. So we can still knock that extra growth away from the others.
Frequently Asked Questions
What was Tamilnad Mercantile Bank's revenue in Q4 FY26?
Tamilnad Mercantile Bank reported revenue of — in Q4 FY26, representing a — change compared to the same quarter last year.
What guidance did Tamilnad Mercantile Bank management give for FY27?
Loan growth of ~20% in FY27: Management expects to defend the 20% loan growth achieved in FY26, driven by MSME and retail segments, even if gold loan growth moderates. Deposit growth of ~16% in FY27: Deposit growth target is set at least 1% higher than FY26's 14.94%, with focus on CASA and term deposits. ROA of 1.9-2% for FY27: Management guided for ROA in the 1.9-2% range, moderating from Q4's 2.05% due to expected margin normalization and branch expansion costs. Cost-to-income ratio to remain below 50%: Despite branch expansion and technology investments, management commits to keeping cost-to-income below 50%, targeting 46-47%.
What are the key risks for Tamilnad Mercantile Bank in FY27?
Key risks include Gold loan growth moderation — If gold prices stabilize, loan growth may slow; management expects MSME and other segments to compensate, but execution risk remains.; Margin pressure from rising deposit costs — Deposit repricing benefits may be limited as industry competition keeps term deposit rates elevated, potentially compressing NIMs.; West Asia crisis impact on export credit — Direct exposure is minimal (0.10% of portfolio), but indirect effects on the economy and borrower health could increase stress.; ECL implementation impact — New expected credit loss norms from April 2027 may require additional provisions; management expects ₹250 crore COVID buffer to largely offset the estimated ₹279 crore impact..
Did Tamilnad Mercantile Bank meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Tamilnad Mercantile Bank Q4 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary with filing verification status shown on the financial stats.