Tamilnad Mercantile Bank Marks 105th Foundation Day as Vice President Urges Broader Lending Strategies

THOOTHUKUDI — Banks in India must adopt a holistic lending strategy that encompasses credit for micro, small, and medium enterprises (MSMEs), corporates, entrepreneurs, and personal loans, rather than narrowing their focus to a single vertical. This was stated by the Vice President of India, CP Radhakrishnan, while speaking at an event marking the 105th foundation day of Tamilnad Mercantile Bank (TMB).

The Vice President emphasized the need for financial inclusion, urging financial institutions to support farmers, entrepreneurs, and women-led enterprises to contribute to the broader vision of Viksit Bharat. He highlighted the trust that established regional institutions like TMB have cultivated over their operating history.

Headquartered in Thoothukudi, TMB was founded in 1921 by business leaders from the mercantile Nadar community to support local trade and independent ventures. Over the decades, the institution has grown from a regional player in southern Tamil Nadu into a private sector bank operating over 600 branches across 17 states. During the foundation day event, the Vice President inaugurated four new branches and regional offices located in Thoothukudi, Chennai, and Thiruvananthapuram.

Tamil Nadu Governor Rajendra Vishwanath Arlekar, who was also present at the event, noted that a bank's primary asset is customer trust. He stated that the management of financial services must go hand-in-hand with managing public trust.

Addressing the gathering, Salee S Nair, Managing Director and CEO of TMB, outlined the bank's recent operational shifts. He reported that strategic measures have accelerated the bank's growth from a compound annual growth rate (CAGR) of 9 percent over the past decade to over 20 percent. Nair added that the bank has grown 8 percent faster than the industry average and recorded its highest-ever net profit.

Financial results released by the bank indicate a quarterly net profit of ₹451 crore for the quarter ended September 2026 (Q2FY27), marking a 42 percent year-on-year increase. Additionally, total business grew by 27.25 percent, representing the highest year-on-year growth recorded since the bank's public listing.

"The steady growth demonstrated by regional financial institutions highlights the importance of balancing trust, legacy, and aggressive operational scaling. As highlighted during the milestone event, diversifying credit portfolios to include MSMEs, entrepreneurs, and personal loans is essential for sustainable banking growth. Financial institutions that maintain strong governance while expanding their geographic footprint are well-positioned to support broader economic development." — Dr. Shishir Gupta, Founder & CEO, StartupLanes