Tamilnad Merchantile Bank - Unlisted Investments
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Tamilnad Merchantile Bank

Key Metrics:

   
S. No. Parameter Performance
1 Earnings Per Share Rs. 28.27/-
2 PAT Growth% (YoY) 6.1%
3 Past 5 year growth in PAT 13.1%
4 Industry Valuation Multiple(Price/Book Value) 3.5x
5 Annual Sales (in crs.) Rs. 52,946.84/-
   

Background:

TMB, is a bank which exists since 95 years! It was initially formed in 1921 under the name of “The Nadar Bank Ltd”. It had small beginning with only 4 branches till 1947. Today it has grown to over 500 full-fledged branches across India, 1057 Automated Teller Machines, 12 Regional Offices, 4 Currency Chests , 11 Extension Counters, 6 Central Processing Centres and 1 Service Branch.

TMB was awarded “The Winner under Credit Quality Category for FY 2014-15 instituted by FE India’s Best Banks Awards”. Over time, it has won several awards showing its superior organisational performance.

Financial performance:

It is the only private sector scheduled bank making profits since 1921. During the year 2015-16, deposits with TMB have crossed Rs. 30,000/- cr. Advances have crossed Rs. 22,500/- cr. The company’s return on equity is a healthy 14.39%. Additionally, the net interest margin is healthy at 3.52%. Net Non-performing assets is low at 0.89%. Earning per share is Rs. 14,138/- with a face value of Rs. 10/-. The company pays high dividend of 16000% i.e. Rs. 1,600 per share since 2013-14. In 2016, the bank has declared a bonus of 1:500.

Future plans:

TMB plans to add more branches, ATMs and increase presence in rural/semi urban centers which have huge untapped potential. In FY17, TMB plans to add 11 more branches, 150 odd ATMS and a few e-lobbies. It will continue to grow and have stronger PAN-India presence.

EPS of the share in 2015-16 was Rs. 28 (after the bonus issue).

Important data points:

  1. Company’s Financial report – click here: Shareholder Performance
  2. 5 year financial snapshot – click here: our impressive performance and achievements
  3. Moody’s rating report – click here: Moodys PBaa2 rating on TMB Banks updated USD EMTN Program