Shares of Tamilnad Mercantile Bank (TMB) surged on Thursday after making a muted debut on major bourses, and ended the day at ₹508.45 and ₹509.65 on the BSE and NSE respectively.
The lender’s shares opened at 3% discount on NSE for ₹495 against the issue price of ₹510, and was at par on the BSE. Intra-day, the shares hit a new high of ₹519 and ₹515 on the bourses.
TMB, which hit the capital market during the second week of September at a price band of ₹500-525, eventually raised ₹808 crore.
“My preliminary view is that it is a good [rate], given the market condition of the day,” said MD & CEO S. Krishnan. “Basically, it all depends on the demand and supply, I expect a further pickup in the days to come,” he added.
Later talking to journalists, the MD said that his immediate goal was to make TMB, a strong mid-size bank in the industry by offering the best of services to customers through phygital (physical and digital) mode, focus on retail, and agri and MSME (RAM) sectors, and expand the footprint based on the potential.
“Today, RAM accounts for 88% of our portfolio and the corporate sector 12%. We have a provision coverage ratio of 88%. Both non-performing assets and return on equity are the best in the industry. NPA is about 1%,” he said.
In the retail segment, the bank will focus on vehicle loans and home loans.
Asked about transfer of bad debts accounts to Asset Reconstruction Company (ARC), he said there was no need for it.
Mr. Krishan assumed the role of MD & CEO on September 5, for a period of three years. He succeeds K.V. Rama Moorthy.
