Tamilnad Mercantile Bank Ltd
Tamilnad Mercantile Bank Ltd
Financial ServicesKey Fundamentals
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BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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54 extracted metrics + investor summaries across FY16–FY26.
Tapetide Score
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Technical Indicators
Key Insights
Weaknesses
5- Company has low interest coverage ratio.
- The company has delivered a poor sales growth of 10.0% over past five years.
- Contingent liabilities of Rs.9,453 Cr.
- Company might be capitalizing the interest cost
- Dividend payout has been low at 14.8% of profits over last 3 years
Growth Rate
AI Analysis — Bull vs Bear
Tamilnad Mercantile Bank trades at a market cap of Rs.13,815 Cr with a PE of 9.6x and PB of 1.31x. The stock has delivered 103% returns over the past year while compounded profit growth stands at 20% TTM, though sales growth has remained modest at 10% over 5 years.
- Stock CAGR of 103% over 1 year and 25% over 3 years indicates strong market re-rating
- PE ratio of 9.6x is attractive relative to banking sector averages, suggesting undemanding valuation
- Compounded profit growth of 20% TTM significantly outpaces revenue growth of 13% TTM, reflecting improving operating leverage
- Consistent ROE of 14-15% over 3-5 years demonstrates stable return generation for shareholders
- Price-to-book of 1.31x remains reasonable for a bank delivering 14% ROE consistently
- Revenue growth accelerating from 10% (5-year CAGR) to 13% (3-year and TTM) shows improving business momentum
- 5-year compounded profit CAGR of 17% reflects sustained earnings expansion over a longer cycle
- Dividend yield of 1.43% provides a baseline income component for shareholders
- Contingent liabilities of Rs.9,453 Cr represent a significant risk relative to Rs.13,815 Cr market cap
- Low interest coverage ratio raises concerns about the bank's ability to service obligations under stress
- 5-year sales growth of only 10% indicates sluggish top-line expansion for a mid-sized bank
- Dividend payout of only 14.8% of profits over last 3 years limits shareholder returns and signals capital retention concerns
- Potential capitalization of interest cost may overstate asset quality and understate true operating expenses
- 3-year compounded profit CAGR of only 9% versus 17% over 5 years suggests a period of earnings deceleration in recent years
- ROE declining marginally from 15% (5-year) to 14% (last year and 3-year) indicates slight pressure on profitability
- After 103% stock rally in 1 year, current valuation may already reflect near-term positives leaving limited margin of safety
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- Q1 profit surges 35% YoY Jul 28
Net profit jumped 35% to ₹4,115 crore in Q1FY27 with NIM expanding to 4.29%. Deposits grew ~20% and advances ~27% YoY.
- Asset quality sharply improves Jul 28
GNPA ratio dropped to 0.69% in Q1FY27, reflecting significant strengthening of asset quality.
- Active investor engagement ramp-up Jul 29
TMB scheduled multiple analyst meets with Capital Group (Aug 4), Monarch Capital (Aug 6), I Wealth (Aug 11), Elara (Sep 2), and Anand Rathi (Sep 21), signaling strong institutional outreach.
- Email domain migration per RBI Jul 21
TMB transitioned to @tmb.bank.in from @tmbank.in per RBI guidelines, with old domain active for 30 days.
- Q1FY27 earnings call released Jul 27
Audio recording of investor/analyst meet for quarter ended June 30, 2026 made available on bank website.
TL;DR: TMB delivered an exceptionally strong Q1FY27 with 35% profit growth, margin expansion to 4.29%, and sub-1% GNPA at 0.69%, while loan growth of 27% outpaced deposit growth of 20%. No material headwinds are visible in recent news flow. The bank is actively courting institutional investors through multiple scheduled meets, suggesting management confidence in the growth trajectory. Trend is clearly improving with no emerging risks flagged.
Quarterly Results
| Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 1,156 | 1,209 | 1,229 | 1,254 | 1,281 | 1,337 | 1,331 | 1,342 | 1,386 | 1,413 | 1,469 | 1,550 | 1,662 |
| Expenses | 340 | 347 | 327 | 388 | 417 | 423 | 355 | 382 | 407 | 373 | 375 | 443 | 446 |
| Financing Profit | 174 | 186 | 210 | 179 | 150 | 173 | 216 | 186 | 173 | 224 | 271 | 262 | 319 |
| Fin. Margin % | 15% | 15% | 17% | 14% | 12% | 13% | 16% | 14% | 12% | 16% | 18% | 17% | 19% |
| Other Income | 167 | 156 | 158 | 164 | 234 | 227 | 189 | 200 | 231 | 208 | 196 | 242 | 238 |
| Interest | 642 | 676 | 692 | 687 | 715 | 741 | 761 | 774 | 807 | 816 | 823 | 846 | 897 |
| Depreciation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| PBT | 341 | 342 | 368 | 343 | 383 | 400 | 404 | 387 | 404 | 432 | 467 | 504 | 557 |
| Tax % | 23% | 20% | 23% | 26% | 25% | 24% | 26% | 25% | 25% | 27% | 27% | 26% | 26% |
| Net Profit | 261 | 274 | 284 | 253 | 287 | 303 | 300 | 292 | 305 | 318 | 342 | 374 | 412 |
| EPS in Rs | 16.5 | 17.27 | 17.95 | 15.98 | 18.14 | 19.15 | 18.96 | 18.43 | 19.25 | 20.05 | 21.57 | 23.6 | 25.99 |
| Gross NPA % | 1.56% | 1.7% | 1.69% | 1.44% | 1.44% | 1.37% | 1.32% | 1.25% | 1.22% | 1.01% | 0.91% | 0.73% | 0.69% |
| Net NPA % | 0.66% | 0.99% | 0.98% | 0.85% | 0.65% | 0.46% | 0.41% | 0.36% | 0.33% | 0.26% | 0.2% | 0.18% | 0.17% |
Profit & Loss
| Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 3,250 | 3,224 | 3,466 | 3,609 | 3,834 | 4,081 | 4,848 | 5,291 | 5,819 | 6,096 |
| Expenses | 1,366 | 1,350 | 1,231 | 1,355 | 1,470 | 1,276 | 1,327 | 1,490 | 1,505 | 1,637 |
| Financing Profit | -157 | -120 | 89 | 183 | 346 | 818 | 824 | 811 | 1,022 | 1,076 |
| Fin. Margin % | -5% | -4% | 3% | 5% | 9% | 20% | 17% | 15% | 18% | 18% |
| Other Income | 506 | 414 | 526 | 644 | 812 | 629 | 645 | 850 | 877 | 884 |
| Interest | 2,041 | 1,994 | 2,147 | 2,072 | 2,019 | 1,987 | 2,697 | 2,990 | 3,292 | 3,383 |
| Depreciation | 40 | 36 | 30 | 29 | 33 | 54 | 75 | 86 | 93 | 0 |
| PBT | 310 | 259 | 585 | 798 | 1,125 | 1,394 | 1,394 | 1,575 | 1,807 | 1,960 |
| Tax % | 28% | 0% | 30% | 24% | 27% | 26% | 23% | 25% | 26% | — |
| Net Profit | 222 | 259 | 408 | 603 | 822 | 1,029 | 1,072 | 1,183 | 1,338 | 1,444 |
| EPS in Rs | 15.57 | 18.14 | 28.61 | 42.34 | 57.67 | 65 | 67.7 | 74.68 | 84.47 | 91.21 |
| Div. Payout % | 21% | 13% | 0% | 0% | 9% | 8% | 15% | 15% | 15% | — |
Balance Sheet
| Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 143 | 143 | 143 | 143 | 143 | 158 | 158 | 158 | 158 |
| Reserves | 3,262 | 3,476 | 3,837 | 4,437 | 5,193 | 6,770 | 7,763 | 8,850 | 9,952 |
| Borrowing | 513 | 0 | 324 | 0 | 0 | 525 | 1,301 | 500 | 700 |
| Deposits | 32,428 | 35,136 | 36,825 | 40,970 | 44,933 | 47,766 | 49,515 | 53,689 | 61,712 |
| Other Liabilities | 1,522 | 1,719 | 1,604 | 1,948 | 2,559 | 2,646 | 2,815 | 3,252 | 2,777 |
| Total Liabilities | 37,868 | 40,473 | 42,733 | 47,499 | 52,828 | 57,866 | 61,552 | 66,450 | 75,300 |
| Fixed Assets | 140 | 138 | 128 | 137 | 211 | 246 | 271 | 284 | 311 |
| CWIP | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | 10,364 | 9,107 | 9,467 | 11,703 | 13,242 | 14,156 | 15,263 | 15,101 | 15,693 |
| Other Assets | 27,364 | 31,228 | 33,137 | 35,658 | 39,374 | 43,464 | 46,019 | 51,065 | 59,296 |
| Total Assets | 37,868 | 40,473 | 42,733 | 47,499 | 52,828 | 57,866 | 61,552 | 66,450 | 75,300 |
Cash Flow
| Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|
| Operating | -389 | 0 | 567 | -670 | 1,325 | -1,270 | -611 | 1,899 | -101 |
| Investing | -26 | 0 | -20 | -37 | -107 | -89 | -100 | -99 | -118 |
| Financing | 472 | 0 | 269 | -324 | -71 | 1,088 | 697 | -960 | 26 |
| Net Cash Flow | 58 | 0 | 816 | -1,031 | 1,147 | -270 | -14 | 840 | -193 |
| Free Cash Flow | -414 | 0 | 547 | -707 | 1,218 | -1,358 | -711 | 1,800 | -219 |
| CFO/OP | -21 | 0 | 25 | -30 | 56 | -32 | -8 | 60 | 8 |
Ratios
| Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|
| ROE % | 7% | 7% | 11% | 14% | 17% | 17% | 14% | 14% | 14% |
Documents
Frequently Asked Questions about Tamilnad Mercantile Bank Ltd
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Company Information
Incorporated in 1921, Tamilnad Mercantile Bank (TMB) is one of the oldest private sector banks in India. It offers an array of banking and financial services to retail customers, micro, small, and medium enterprises (MSMEs).[1]