Tamilnad Mercantile Bank, a Tamil Nadu-focused private bank with a 628-branch network, heads into its Q2 FY 2026-2027 print with provisional September business growth of 27.27% YoY running well ahead of its raised full-year guidance. The print will speak to whether NIM holds near the 4.29% Q1 level, whether CASA growth closes the gap to the 17-18% Q2 guide, and whether operating profit stays above the Rs. 500 Cr quarterly benchmark.
| Results date | October 26, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Previous quarter net profit | Rs. 411.51 Cr (+34.97% YoY, +10.13% QoQ) |
| Previous quarter NII | Rs. 765.08 Cr (+32.01% YoY) |
| Previous quarter NIM | 4.29% (+45 bps YoY) |
| Market cap | Rs. 13,478.13 Cr |
| CMP | Rs. 851.15 |
The board of Tamilnad Mercantile Bank will meet on October 26, 2026 to consider the Q2/H1 FY27 financial results, per the board-meeting intimation dated October 9, 2026. The trading window for designated persons remains shut from October 1 to October 28, 2026.
The bank has scheduled its earnings call on the Q2/H1 FY27 results for October 26, 2026 at 5:00 PM IST. Access is via Diamond Pass pre-registration, with international dial-in numbers provided for the USA, UK, Singapore and Hong Kong.
The quarter's central test is whether TMB can convert its provisional September momentum — advances +29.37% YoY, deposits +25.49% YoY and total business Rs. 1,30,261 Cr (+27.27% YoY) — into a second straight quarter against guidance that management already raised at the July call to advances growth of 21-22%, deposit growth of 18% and total business growth of 20% for FY27. Margins are the swing factor: the repo rate was unchanged at 5.25% through the July-September window, so the October 7 hike to 5.50% and the bank's 25 bps RLLR increase to 8.50% effective October 8 are Q3 tailwinds, while deposit costs were still easing (fresh term-deposit rate down from 5.85% in July to 5.67% in August) against the 4.29% Q1 NIM and the 'well above 4%' FY27 guide. Asset quality starts from a comfortable GNPA of 0.69% — the lowest in 40 quarters — but the gold-driven SMA 0,1&2 uptick to 2.21%, the Rs. 37 Cr MSME slippages (two accounts, expected to resolve in Q2) and softening gold prices (MCX gold below Rs. 1.50 lakh/10g on September 2, 2026 versus ~Rs. 1.54 lakh in mid-June) make the gold book the item to watch against a portfolio LTV of 61.67%. Q2-specific confirmations include the Rs. 13.60 Cr FEMA refund expected after the July 9, 2026 SAFEMA Appellate Tribunal order cut the Rs. 16.99 Cr penalty to Rs. 3.40 Cr, while the Rs. 1,037 Cr bonus-share show cause notice remains pending with the bank's legal opinion capping exposure at Rs. 2 lakhs, fully provided.
FY27 guidance tracking after the Q1 raise: Management raised guidance at the Q1 FY27 call on July 27, 2026; provisional September data offers an early read.
Operating profit high-water mark and Q2 one-offs
Gold loan book quality and growth mix
Strategic execution: branches, technology and ECL readiness
Management has said 'INR500 crores of operating profit will certainly be defended', and Q4 FY26 delivered Rs. 522 Cr while Q1 FY27 delivered Rs. 611.07 Cr. The Q2 print will show whether the new Rs. 611 Cr high-water mark is sustained.
The Rs. 1,037 Cr show cause notice relates to a pre-listing bonus share issue under FEMA, with adjudication still pending. Management's position, backed by a top legal firm's opinion, is that the FEMA-section maximum is Rs. 2 lakhs, which is fully provided, and no money changed hands.
The portfolio LTV was 61.67% at Q1 FY27, and the bank's own sensitivity shows a 25% gold-price drop would take LTV to 81.76% with 7.83% of the book above market price, while a 30% drop takes it to 87.60% with 28.01% above market price. The portfolio is tracked daily, with an 85% LTV cap on consumption loans and a ~75% general cap.
Yes — at the July 27, 2026 call management raised FY27 guidance to advances growth of 21-22% (from 20%), deposit growth of 18% (from 16%), total business growth of 20% (from 18%), NIM 'well above 4%', ROA over 2% and ROE of 15%. Provisional September 30, 2026 data shows advances +29.37% YoY and deposits +25.49% YoY.
CASA share slipped 198 bps QoQ to 26.16%, which management attributed to a deliberate focus on term deposits. The bank targets CASA growth of 17-18% by Q2 FY27 and the rest of the year, with the Transaction Business Group and branch expansion as rebuild levers.