TMB - Tamilnad Mercantile Bank Limited Share Price

Here are the key questions and answers from the Q&A section of the earnings conference call transcript:

Question 1: "Sir, my question is that this quarter, we have seen good growth in RAM, the retail, agri and MSME, especially the retail part. Will the same growth momentum continue?"

• Answer: I anticipate that the growth momentum will continue. This is not a one-off occasion; results in the next quarters will confirm this. Our initiatives, including a stronger RM base and centralized appraisals, have positively influenced our performance.

Question 2: "Would you like to give some guidance for this year FY '26? Will we achieve a 13%, 14% growth in the loan book?"

• Answer: We expect to see a credit growth of 14% to 15% for FY '26 and deposit growth of 12% to 13%, alongside 12% for CASA. Both our liability and asset sides will experience accelerated growth beyond our original expectations.

Question 3: "Regarding the shareholder case, will there be any monetary impact on our company?"

• Answer: No, there won't be any significant impact. It's a shareholder dispute and we have properly accounted for a maximum penalty of INR 2 lakhs. This is not an issue of cash transaction, nor does it involve money laundering, as confirmed by legal counsel.

Question 4: "What is the outstanding Technically Written-Off pool as of September?"

• Answer: The Technical Written-Off (TWO) pool is currently just under INR 2,000 crores. We have not moved assets out of technical write-off, which reflects historical baggage.

Question 5: "Can you mention the size of the jewel loans and the consumer loans?"

• Answer: Our jewel loan portfolio amounts to INR 21,000 crores while the consumer loan stands at INR 4,300 crores. We will continue focusing on jewel loans but are also seeing growth in non-jewel portfolios.

Question 6: "What is your outlook on the other advances portfolio?"

• Answer: The corporate book is around INR 2,500 crores. We will increase our involvement in this area after ensuring our systems and skills are up to par.

Question 7: "Can you give some insight into your IT investment and plans?"

• Answer: We plan to invest INR 250 crores in technology this year, split between CAPEX and OPEX. This investment is focused on modernizing our legacy systems and enhancing operational efficiency, with significant projects already in progress.

Question 8: "How are you managing risk from U.S. tariffs and unseasonal rains?"

• Answer: We believe our portfolio is insulated from risks due to U.S. tariffs and unseasonal rains, particularly in agriculture, as our focus is on gold-backed loans which mitigate stress factors.

These answers highlight the bank's confidence in its growth trajectory, effective management of risks, and plans for future investments, reinforcing its positive outlook for FY '26 and beyond.