Incorporated in 1921, Tamilnad Mercantile Bank (TMB) is one of the oldest private sector banks in India, headquartered in Thoothukudi, Tamil Nadu. The bank was originally incorporated as 'Nadar Bank Limited' on May 11, 1921, and was subsequently renamed to 'Tamilnad Mercantile Bank Limited' on November 27, 1962. With over a century of banking excellence, TMB has established itself as a prominent regional player in the Indian banking sector.
The bank is engaged in providing a wide range of banking and financial services involving retail, corporate banking, and para-banking activities, in addition to treasury and foreign exchange business. It offers banking products and services to retail, micro, small and medium enterprises (MSME), agricultural, and corporate customers, with a particular focus on serving the banking needs of South India.
TMB operates through four main segments: Treasury, Corporate and Wholesale Banking, Retail Banking, and Other Banking Operations. The bank's retail asset products include home loans, personal loans, auto loans, educational loans, business loans, as well as security-backed loans of various types to its retail customers. For corporate customers, it offers various loans to corporates in textiles and other industries, with its assortment of banking products and services including working capital, term finance, trade finance, and foreign exchange business funding in domestic and foreign currencies.
As of FY24, the bank has a branch network of 688 branches (including 134 correspondent), of which 48% are located in semi-urban areas, 16% in urban, 21% in rural, and 15% in metropolitan centers. The bank has an ATM network of 1,157, providing extensive reach across Tamil Nadu and other southern states. The bank has opened 26 new branches during the year FY 24-25, demonstrating its commitment to expanding its distribution network.
The market cap of Tamilnad Mercantile Bank Ltd (TMB) is ₹7,100.48 crore as of May 30, 2025. The bank has shown a consistent growth trajectory in its financial performance over the years.
- Net Profit: Rose to ₹291.9 crore in Q4 FY25, up from ₹253.1 crore in the corresponding quarter last year, representing a 15.3% year-on-year increase.
- Full Financial Year Net Profit (FY25): Increased by 10.35% to ₹1,183 crore from ₹1,072 crore in FY24.
- Net Interest Income (Q4 FY25): Reached ₹567.9 crore compared to ₹567 crore in the same period last year.
- Gross Advances: Stood at ₹44,365 crore as of March 31, 2025, recording a growth of 11% compared with ₹39,970 crore as of March 31, 2024.
- Deposits: Increased to ₹53,689 crore as of March 2025 as against ₹49,515 crore in March 2024.
- Gross NPAs to Gross Advances: Stood at 1.25% as of March 31, 2025, compared to 1.44% as of March 31, 2024.
- Net NPAs to Net Advances: Improved to 0.36% as of March 31, 2025, from 0.85% as of March 31, 2024.
Retail, Agriculture, and Micro, Small and Medium Enterprises (RAM) advances climbed 13.19% year-on-year to ₹41,297 crore as of March 31, 2025. This demonstrates the bank's strategic focus on serving the RAM segment, which forms the backbone of its business model.
The bank has entered into several strategic partnerships for digital transformation and increasing operational efficiency to enhance customer growth. These initiatives reflect TMB's commitment to modernizing its operations and staying competitive in the evolving banking landscape.
- P/E Ratio: 6.00, indicating relatively attractive valuation compared to industry peers.
- P/B Ratio: 0.90, suggesting the stock is trading below its book value.
- 52-Week High: ₹513.55
- 52-Week Low: ₹401
Tamilnad Mercantile Bank's 103rd Annual General Meeting is scheduled for August 8, 2025, with book closure from August 2-8. The bank's board has appointed K Ramachandran as Additional Director and Part-Time Chairman, subject to RBI and shareholder approvals, bringing over three decades of banking experience.
TMB continues to strengthen its position as a leading regional bank with a strong focus on serving the financial needs of retail customers, MSMEs, and agricultural segments in South India. The bank's century-long legacy, combined with its strategic modernization efforts and consistent financial performance, positions it well for future growth in the competitive Indian banking sector.
