Tamilnad Merchantile Bank

Key Metrics:

Sr. No.

Parameter

Performance

1

Earnings Per Share:

Rs. 28.27/-

2

PAT Growth% (YoY):

6.1%

3

Average 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 - http://www.tmb.in/doc/shareholder_performance_01.pdf

2) 5 year financial snapshot - http://www.tmb.in/about_financial_highlights/our_impressive_performance_and_achievements.html

3) Moody's rating report - https://www.moodys.com/research/Moodys-PBaa2-rating-on-TMB-Banks-updated-USD-EMTN-Program--PR_345597

 

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