Tamilnad Mercantile Bank Ltd
NSE:TMB
Tamilnad Mercantile Bank Ltd
Tamilnad Mercantile Bank Ltd. engages in the provision of banking services. The company is headquartered in Thoothukudi, Tamil Nadu. The company went IPO on 2022-09-15. The bank operates through four segments: Treasury, Corporate / Wholesale Banking, and Retail Banking. Its treasury operations focus on the management of its funds, maintenance of statutory reserves (cash reserve ratio and statutory liquidity ratio), asset liability gaps, interest rate risks, liquidity positions, investments, and trading activities. The company also manages trades in equity and forex instruments. The bank offers commercial banking products to its customers including current account facilities, online services, such as Internet banking, and short message service (SMS) alerts, and foreign exchange services. The company provides various kinds of loans. The company also offers other services including online fee payment, online bill payment, forex services, and Demat services. The bank offers a secure application, TMB DigiLobby, for customers to view all their account balances and transactions on their mobile devices.
Tamilnad Mercantile Bank Ltd. engages in the provision of banking services. The company is headquartered in Thoothukudi, Tamil Nadu. The company went IPO on 2022-09-15. The bank operates through four segments: Treasury, Corporate / Wholesale Banking, and Retail Banking. Its treasury operations focus on the management of its funds, maintenance of statutory reserves (cash reserve ratio and statutory liquidity ratio), asset liability gaps, interest rate risks, liquidity positions, investments, and trading activities. The company also manages trades in equity and forex instruments. The bank offers commercial banking products to its customers including current account facilities, online services, such as Internet banking, and short message service (SMS) alerts, and foreign exchange services. The company provides various kinds of loans. The company also offers other services including online fee payment, online bill payment, forex services, and Demat services. The bank offers a secure application, TMB DigiLobby, for customers to view all their account balances and transactions on their mobile devices.
Growth Outperformance: The bank exceeded its own business growth guidance for Q3, achieving 14.28% total business growth, with advances up 16.30%, both ahead of expectations.
Record Profitability: Net profit reached an all-time high of INR 341.50 crores (up 13.74% YoY), and ROA for the quarter rose to 1.97%.
Asset Quality Strength: GNPA and NNPA remained low at 0.91% and 0.20% respectively, demonstrating strong stress management.
CASA & NIM Improvement: CASA share increased to 27.95% (up 155 bps YoY) and net interest margin for the quarter reached 4.04%, both surpassing guidance.
Guidance Raised: Management now expects advances growth to be over 16% for FY '26 and at least 16-17% in the next year, with CASA growth to exceed 15%.
Branch Expansion: 36 new branches opened in 10 months, with focus expanding outside Tamil Nadu, aiming for 35% of branches in other states over five years.
Digital and Process Transformation: Significant IT investments and rollout of new digital platforms and centralized credit systems are underway, expected to boost growth and efficiency.
Legal Issue Low Impact: Ongoing shareholder-related legal case is expected to have a negligible financial impact, with a maximum potential penalty of INR 2 lakhs already fully provided for.
