Tamilnad Mercantile Bank sets record date for ₹5 dividend, scrip up by 2%

A mid-cap private sector bank with a market capitalization of Rs. 7,163.03 Cr. is Tamilnad Mercantile Bank Ltd. The bank, which is 102 years old and has 509 branches and 12 regional offices spread all over India, was founded in 1921. The record date announcement for the ₹5 per share dividend for the eligible shareholders drove the shares of Tamilnad Mercantile Bank to conclude the day on a positive note.

Tamilnad Mercantile Bank said in a stock exchange filing that the Board of Directors has “declared an Interim Dividend of ₹5/- per equity share of the face value ₹10/- each for the Financial Year 2022-23. The record date for ascertaining the eligibility of the shareholders of the Bank to receive the Interim Dividend has been fixed as Friday, February 24, 2023. The Interim Dividend will be paid on or after 6th March 2023.”

The bank's net worth rose by ₹1,617 crores in absolute numbers and by 32.56% YoY to ₹6,583 crores in Q3FY23 from ₹4,966 crores in Q3FY22. The gross NPA as a percentage of total advances was 1.70 %, while the net NPA was 0.7% during the quarter ended inDecember 2022. The bank's Return on Asset (ROA) and Return on Equity (ROE) both grew to 2% and 17.14% in Q3FY23, respectively, while Net Interest Income (NII) climbed by 18% to ₹534.27 crores in the third quarter of fiscal year 23 from ₹452.76 crores in the third quarter of fiscal year 22.

At the end of the third quarter in December 2022, the bank's overall business had grown by 5.69%, reaching ₹78,242 Crores, while the third quarter of FY23 saw its deposit and advance portfolio at ₹43,440 Cr and ₹34,802 Cr, respectively. The bank's CASA position increased by 10.15 percent to ₹12,851 crores, and its operating profit for the third quarter of fiscal year 23 was ₹404.81 crores as opposed to ₹401.12 crores in the third quarter of fiscal year 22. Tamilnad Mercantile Bank's net profit increased by 37.86% YoY to Rs. 279.70 crores during the third quarter of FY23 from Rs. 202.88 crores recorded in the year-ago quarter.

With its headquarters in Thoothukudi, Tamilnad Mercantile Bank Ltd. (TMB), one of the prominent old private sector banks, has a long and successful history spanning more than 100 years. More than 5 million satisfied customers are served by TMB, which has a presence throughout all of India with 511 branches, 12 regional offices, and sites in 16 states and 4 union territories.

The shares of Tamilnad Mercantile Bank closed today on the NSE at ₹452.85 apiece, up by 2.05% from the previous close of ₹443.75. The stock recorded a net volume average of 126,870 shares and a delivery volume average of 3,708,410 shares or 29.23%. The stock touched a 52-week-high of ₹548.50 on (01-Dec-2022) and a 52-week-low of ₹423.00 on (15-Feb-2023).