Newly Listed Bank Surges 7.57% After An Agreement With RBI

The shares of Tamilnad Mercantile Bank (TMB) appreciated to the tune of 7.57% to reach a 52-week high of ₹ 548.50 apiece after the Reserve Bank of India (RBI) authorized it to undertake government business on its behalf. Its shares were trading at ₹ 528.15 (up 3.58%) at 11:51 AM on Thursday.

The private sector lender signed an agreement in this connection with the RBI, in Mumbai, for appointing it as an ‘agency bank’ of the RBI to undertake government agency business.

“On getting listed in the Stock Exchanges, Tamilnad Mercantile Bank Ltd., is back to enrich our vision in expanding the network PAN India, with added features in the products and services,” said S. Krishnan, MD & CEO, Tamilnad Mercantile Bank.

The bank’s shares made a dull stock market debut on the bourses on September 15, 2022. Its shares got listed at ₹ 495 apiece on the NSE, which was at a 3% discount to the issue price of ₹ 510 per share.They were trading almost sideways until November 30, 2022, however there was a spike after the agreement with the apex bank.

MB had reported a 37.1 per cent increase in net profit at ₹ 262 crores in the July-September quarter on growth in income and a fall in bad loans. It earned a net profit of ₹191 crores last year.

Tamilnad Mercantile Bank is one of the premier scheduled commercial banks in India. It is headquartered in Thoothukudi, Tamil Nadu (NS: TNNP ) and has a long cherished history of 100+ years of eventful existence. It has a pan-India presence with 509 branches and 12 Regional Offices across 16 states and 4 Union Territories serving more than 5 million delighted customers.