Tamilnad Mercantile Bank IPO

Return on Assets: Its Return on Assets stood at 1.3% compared to a median 0.7% for its peers, in FY21

Diversified loan book : Diversified loan book consisting of retail customers, agricultural customers, corporates and MSMEs

Net Non- Performing Assets: Its net non- performing assets (NNPA) have reduced from 2.4% in FY19 to 1.9% in FY21

CASA: Its current account saving account (low cost funds) to total deposit ratio rose to 28.5% in FY21 from 24.6% in FY19.

Net interest margin : Net interest margin, which is an important metric of profitability, increased from 3.6% in FY19 to 3.7% in FY21.

Bank credit to GDP: Tamil Nadu is under-penetrated. Its bank credit to GDP stood at 53% as compared to 89% in case of Maharashtra and 37% for Gujarat

Risks : 37.6% of its paid up equity share capital is subject to outstanding legal proceedings which are pending in various forums.

Petition in the Court: Its former director has filed a petition in the court, alleging mismanagement in the bank, and cited ongoing proceedings against the bank by the Directorate of Enforcement.

Legal Proceedings: Its business, reputation and financial results could be impacted by adverse results in the legal proceedings.

New Branches: Requires permission from the Reserve Bank of India to open new branches