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Tamilnad Mercantile Bank
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Tamilnad Mercantile Bank Limited was incorporated in the name of Nadar Bank Limited' on May 11, 1921 at Thoothukudi, Tamil Nadu as a limited company under Indian Companies Act, 1913 pursuant to a certificate of incorporation issued by the erstwhile Assistant Registrar of Joint Stock, Palamcottah.. Subsequently, name of the Bank was changed to Tamilnad Mercantile Bank Limited', with effect from November 27, 1962, pursuant to a letter of approval from the Government of India dated November 14, 1962 and a fresh certificate of incorporation dated July 17, 1968 was issued by the Assistant Registrar of Companies, Madras. Presently, the Bank is engaged in providing a wide range of banking & financial services involving retail, corporate banking and para-banking activities in addition to treasury and foreign exchange business.
On November 11, 1921, the Bank commenced business at Thoothukudi, in Tamil Nadu. In 1933, it acquired its first property at Beach Road, Thoothukudi, in Tamil Nadu. On May 11, 1935, it was included in the second schedule to the Reserve Bank of India Act, 1934. It was granted the licence to carry on banking business in India by RBI on November 20, 1962. It opened a a rural branch at Vilathikulam, Tamil Nadu in 1968. In 1993, it was registered as Category-1 Merchant Bankers with SEBI and opened first currency chest at Madurai Branch.
The Bank was granted licence to deal in foreign exchange in 1999. It launched first ATM, christened as TMB Surabhi, in Chennai in 2004. In 2005, it launched first insurance linked deposit scheme, christened as Siranjeevee Recurring Deposit. It launched SMS banking services and internet banking facilities, christened as TMB E-Connect in 2008. It launched mobile banking facilities in 2012. It signed an agreement for the issuance of PAN cards in 2014.
As of June 30, 2021, the Bank had 509 branches, of which 106 branches were in rural, 247 in semi-urban, 80 in urban and 76 in metropolitan centres. It built a strong presence in the state of Tamil Nadu, with 369 branches and 941 automated teller machines (ATMs) and 238 cash recycler machines (CRMs). The Bank offer a wide range of banking and financial services primarily to micro, small and medium enterprises (MSME), agricultural and retail customers, operating in manufacturing, trading and services sector.
During 2021-22, the Bank had 509 branches, of which 106 branches were in rural, 247 in semi-urban, 80 in urban and 76 in metropolitan centres. It introduced 9 new ATMs, 22 new CRMs. The Bank's ATM and alternate delivery channel network stood at 1141 ATMs, and 282 CRMs.
The Bank had issued by way of Initial Public Offering (IPO). 1,58,40,000 Equity Shares of Rs 10/- each at a premium of Rs 500/- each on 12.09.2022 and as a result of allotment of shares, the Bank's shares got listed in both the exchanges i.e., BSE & NSE effective on 15.09.2022.
During the year 2022-23, the Bank added 21 new branches and the branch network of the bank increased to 530 branches. In addition to that, the Bank added 50 new ATMs / CRMs and 12 new e-lobbies. The Bank's ATM and alternate delivery channel network stood at 1,149 ATMs, 324 CRMs, 113 e-lobbies, covering 17 States and 4 Union Territories.
Tamilnad Mercantile Bank share price reflects investor sentiment toward the company and is impacted by various factors such as financial performance, market trends, and economic conditions. Share price is an indicator which shows the current value of the company's shares at which buyers or sellers can transact.
Market capitalization of Tamilnad Mercantile Bank indicates the total value of its outstanding shares. Marketcap is calculated by multiplying share price and outstanding shares of the company. It is a helpful metric for assessing the company's size and market Valuation. It also helps investors understand how Tamilnad Mercantile Bank is valued compared to its competitors.
Tamilnad Mercantile Bank PE ratio helps investors understand what is the market value of each stock compared to Tamilnad Mercantile Bank 's earnings. A PE ratio higher than the average industry PE could indicate an overvaluation of the stock, whereas a lower PE compared to the average industry PE could indicate an undervaluation.
The PEG ratio of Tamilnad Mercantile Bank evaluates its PE ratio in relation to its growth rate. A PEG ratio of 1 indicates a fair value, a PEG ratio of less than 1 indicates undervaluation, and a PEG ratio of more than 1 indicates overvaluation.
Return on Equity (ROE) measures how effectively Tamilnad Mercantile Bank generates profit from shareholders' equity. A higher ROE of more than 20% indicates better financial performance in terms of profitability.
Return on Capital Employed (ROCE) evaluates the profitability of Tamilnad Mercantile Bank in relation to its capital employed. In simple terms, ROCE provides insight to investors as to how well the company is utilizing the capital deployed. A high ROCE of more than 20% shows that the business is making profitable use of its capital.
Total debt of Tamilnad Mercantile Bank shows how much the company owes to either banks or individual creditors. In simple terms, this is the amount the company has to repay. Total debt can be a very useful metric to show the financial health of the company. Total debt more than equity is considered to be a bad sign.
The Debt-to-Equity (DE) ratio of Tamilnad Mercantile Bank compares its total debt to shareholders' equity. A higher Debt to Equity ratio could indicate higher financial risk, while a lower ratio suggests that the company is managing its debt efficiently.
CAGR shows the consistent growth rate of Tamilnad Mercantile Bank over a specific period, whether it is over a month, a year, or 10 years. It is a key metric to evaluate the company’s long-term growth potential. Main metrics for which CAGR is calculated are net sales, net profit, operating profit, and stock returns.
Technical analysis of Tamilnad Mercantile Bank helps investors get an insight into when they can enter or exit the stock. Key components of Tamilnad Mercantile Bank Technical Analysis include:
There are usually multiple support levels, but the main support levels for a stock are S1, S2, S3. Support levels indicate price points where stock might get support from buyers, helping the stock stop falling and rise.
There are usually multiple resistance levels, but the main resistance levels for a stock are R1, R2, R3. Resistance levels represent price points where Tamilnad Mercantile Bank shares often struggle to rise above due to selling pressure.
Dividends refer to the portion of the company’s profits distributed to its shareholders. Dividends are typically paid out in cash and reflect Tamilnad Mercantile Bank ’s financial health and profitability.
Bonus shares are usually given by companies to make the stock more affordable, increase liquidity, boost investor confidence, and more.
Stock split increases the number of its outstanding shares by dividing each existing share into multiple shares. When the company offers a stock split, the face value of the stock reduces in the same proportion as the split ratio.
The financials of Tamilnad Mercantile Bank provide a complete view to investors about its net sales, net profit, operating profits, expenses, and overall financial health. Investors can analyze financial data to assess the company’s stability and also understand how the company has been growing financially.
The profit and loss statement of Tamilnad Mercantile Bank highlights its net sales, net profit, total expenditure, and operating profits in the current financial year. This Profit and Loss statement is crucial for evaluating the profitability and financial stability of Tamilnad Mercantile Bank .
The balance sheet presents a snapshot of Tamilnad Mercantile Bank ’s assets, liabilities, and equity of shareholders, providing insights into the financials of the company.
Cashflow statements track the company's cash inflows and outflows over a period. It is an essential tool for understanding how well the company manages its liquidity and finances.
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