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Tamilnad Mercantile Bank Limited IPO Review





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), and more. TMB has a strong portfolio of advances and deposits from a diversified customer base including retail customers, agricultural customers, and MSMEs.

About Company:

As of March 31, 2022, the bank has a strong branch network of 509 branches and a total customer base of 5.08 million. TMB has a significant market presence in the state of Tamil Nadu with 369 branches and is also present in 15 other states and 4 union territories of India.


Competitive Strengths:

  1. Long-term track record with almost 100 years of history.
  2. Strong presence in Tamil Nadu and consistent focus to expand presence in strategic regions.
  3. Diversified and loyal customer base i.e., retail, MSMEs, and agricultural.
  4. Consistently growing customer deposit base with a focus on low-cost retail CASA.
  5. Proven financial performance track record.


Tamilnad Mercantile Bank IPO Objectives:

  1. Utilize funds for meeting the bank’s future capital requirements.
  2. Also derive benefits of being a publicly listed company.


Company Financials:

Tamilnad Mercantile Bank Limited Financial Information (Restated)

Period Ended 

Total Assets 

Total Revenue 

Profit After Tax 

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 Amount in Rs Crore


  1. Around 37% of paid-up equity share capital is subjected to outstanding legal proceedings.
  2. The bank cannot open new branches unless it is listed and also require to obtain prior permission from the RBI.


Objects of the Issue:

  1. To augment the tier-I capital base to meet future capital requirements.
  2. Meet offer issue expenses.
  3. To receive the benefits of listing the shares on the stock exchanges.


Company Promoters:

  1. TMB is a professionally managed bank.


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