Tamilnad Mercantile Bank to Increase Cybersecurity Budget to 20% of IT Spend

CHENNAI — Private sector lender Tamilnad Mercantile Bank (TMB) plans to increase its cybersecurity budget to 20% of its total information technology spending next year, Managing Director and Chief Executive Officer Salee S. Nair announced on Monday.

The Tuticorin-headquartered bank has earmarked a capital expenditure of Rs 280 crore for the current fiscal year (FY27). Of this amount, 10% is currently allocated to cybersecurity, with plans to double that proportion in the coming year to protect against digital risks.

"By next year, we should see that moving up because that’s one area where we are going to invest heavily," Nair said on Monday. "We are aware of the risks involved as we become more and more digital. We have to be on our guard, and you will see substantial investments happening there. Our objective is to gradually increase the cybersecurity budget to 20% of our overall IT budget."

Alongside its technology investments, the lender is seeking to raise $50 million through Foreign Currency Non-Resident (Bank) deposits and Overseas Foreign Currency Borrowings under the Reserve Bank of India's swap initiative.

According to Nair, TMB has mobilised $10 million since the announcement of the RBI's swap initiative. The bank is taking steps to leverage further foreign funding opportunities through liaison officers stationed in Malaysia, Singapore, and West Asia, particularly in Dubai.