TAMILNAD MERCANTILE BANK Q2 CONCALL : NET PROFIT UP 42% YOY, ADVANCES UP 29% & MANAGEMENT GUIDES FOR 22%+ FY27 LOAN GROWTH

• MANAGEMENT EXPECTS FY27 ADVANCES GROWTH ABOVE 22% & DEPOSIT GROWTH ABOVE 20%, SUPPORTED BY STRONG RETAIL, AGRICULTURE & MSME LENDING • MANAGEMENT GUIDES FOR H2 FY27 NET INTEREST MARGIN OF 4.10% ± 5 BPS, INDICATING SOME ADDITIONAL MARGIN COMPRESSION • MANAGEMENT TARGETS LONG-TERM BUSINESS GROWTH OF 4–5 PERCENTAGE POINTS ABOVE INDUSTRY GROWTH • Q2 NET PROFIT UP 42.09% YOY TO A RECORD ₹451 CR, WHILE NET INTEREST INCOME INCREASED 35.17% TO ₹807 CR • Q2 OPERATING PROFIT UP 41.80% YOY TO ₹642 CR, WITH RETURN ON ASSETS AT 2.18% & RETURN ON EQUITY AT 16.92% • TOTAL BUSINESS UP 27.25% YOY TO ₹1,30,237 CR, REPRESENTING THE BANK'S STRONGEST ANNUAL BUSINESS GROWTH IN APPROXIMATELY 18 YEARS • TOTAL ADVANCES UP 29.32% YOY TO ₹60,691 CR, WITH RETAIL, AGRICULTURE & MSME LOANS CONTRIBUTING 94.33% OF THE LOAN BOOK • TOTAL DEPOSITS UP 25.49% YOY TO ₹69,546 CR, WHILE CASA DEPOSITS GREW 16.26% & TERM DEPOSITS INCREASED APPROXIMATELY 29% • NET INTEREST MARGIN IMPROVED 36 BPS YOY TO 4.19%, BUT DECLINED 10 BPS QOQ DUE TO HIGHER DEPOSIT COSTS • COST OF DEPOSITS INCREASED TO 5.85% FROM 5.68% QOQ, WHILE YIELD ON ADVANCES IMPROVED TO 10.32% FROM 10.10% • ASSET QUALITY REMAINS STRONG, WITH GROSS NPA AT 0.61%, NET NPA AT 0.14% & CREDIT COST AT JUST 0.09% • MANAGEMENT IS PREPARING FOR APRIL 2027 ECL IMPLEMENTATION, WITH ESTIMATED PROVISIONING REQUIREMENT OF APPROXIMATELY ₹385 CR & SUBSTANTIAL PROVISIONS ALREADY CREATED • MANAGEMENT TARGETS 60 NEW BRANCHES DURING FY27, INCLUDING MORE THAN 20 OUTSIDE TAMIL NADU, WHILE EXPECTING COST-TO-INCOME RATIO TO REMAIN WELL BELOW 44% • CAPITAL ADEQUACY REMAINS ROBUST AT 32.39%, WITH LIQUIDITY COVERAGE RATIO AT 139.43% & NET STABLE FUNDING RATIO AT 146.15% • MANAGEMENT REMAINS CONFIDENT ABOUT GROWTH & ASSET QUALITY, BUT RISING DEPOSIT COSTS, SLOWER CASA GROWTH, GOLD LOAN EXPOSURE & POTENTIAL NIM COMPRESSION REMAIN KEY RISKS

TAMILNAD MERCA BANK LTD

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