Tamilnad Mercantile Bank was integrated in 1921 as Nadar Bank. It offers services to a wide range of clients including retail customers, SME enterprises, agricultural businesses, etc. The bank currently has 509 branches in India, out of which 369 are in the home state of Tamil Nadu. It brings over 70% of business and the rest of the branches are spread across 15 states and four Union territories. Tamilnad Mercantile Bank is into the lending business for 100 years and is ongoing.
Its overall customer base was 50.8 lakh as of FY22-end and 80 per cent of its customers have been associated with the bank for more than five years.
The TMB is leading with the total income and PAT growth of 7.99% and 41.99% CAGR over FY20-22. The cost to assets for TMB at 2.2 per cent for FY22 stood at the fifth lowest, it said, adding that the cost to income ratio at 42.1 per cent for FY22 was the second best in its comparison universe.
It is said, TMB monitors the asset quality continuously and aims at further improving on the back of increasing secured advances, diversification across loan book tenures, low concentration across branches and more stringent audit procedures.
Facts about the Company
- The Bank has a long-term track record with almost 100+ years of history. And TMB is one of the oldest and leading private sectors in India and over the last three years, the bank has delivered strong revenue growth and margin expansion. Due to RBI's direction for listing, its branch expansion plan was put on hold, but once it gets listed, it will expand its network
- Looking at the bull case scenario it is assumed that FY25 gross advances for the bank at Rs 52,106.9 crore in FY25 (CAGR of 15.3 per cent over FY22-25) and NIMs of 4.2 per cent (up 40 bps over FY22). In its bear case scenario, it has assumed FY25 gross advances of Rs 44,388.2 crore in FY25, up 9.3 per cent.
- TMB has had a diversified and loyal customer base for a long i.e., retail, MSMEs, and agricultural.
Points to note before investing in Tamilnad Mercantile Bank IPO
- Bank's deposit has a healthy growth pace and has an 8% of CAGR.
- It has the best asset quality, underwriting practices, and risk management procedure which keeps the bank one of the oldest and the leading banks among its peers
- To know the bank's financial performance over a year, refer to the table below-
Particulars (in Rs. Crores)
Objective of the IPO
It is a book-built issue and the funds will be utilized to meet future capital requirements, to meet offer issue expenses, and receive the benefits of listing the shares on the stock exchanges.
Sept 5, 2022
Sept 7, 2022.
Book Built Issue IPO
₹10 per share
₹500-525 per share
Allotment, Listing & Refund Details
Finalization of Basis of Allotment
Sep 12, 2022
Initiation of Refunds
Sep 13, 2022
Credit of Equity Shares
Sep 14, 2022
Sep 15, 2022
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