Abhishek Securities

  The  Madras High Court  (HC) has revealed that Tamilnad Mercantile Bank’s (TMB) initial public offering (IPO) resolution has been passed, including the election of its directors. All the resolutions — submitted to the court in a sealed cover — were passed with more than one third of the votes polled. The bank has, since 2016, been seeking the nod of its shareholders, who are largely from the Nadar community, to go public, but a majority has been rejecting the proposal. At the 93rd annual general meeting (AGM) held in 2016, when the proposal for an  IPO  was placed before the shareholders for the first time, it was declined. The lender held four AGMs between 2015-16 and 2018-19 (94th AGM to 97th AGM), and the one held last month was under the supervision of the Madras HC. The voting results were given to the court in a sealed cover. While the formal order of the court was not uploaded, it dictated the voting results wherein it was stated nearly 75 per cent of t...

  India’s anti-money laundering agency fined Standard Chartered Plc 1 billion rupees ($13.6 million) for breaking foreign exchange rules when it worked on the takeover of a local bank, marking one of the country’s biggest penalties imposed on an overseas lender. An eight-year probe found that Standard Chartered violated the so-called foreign exchange management act — which monitors offshore financial transactions — when it worked with a group of investors to buy a stake in Tamilnad Mercantile Bank Ltd. in 2007, according to an August order from India’s enforcement agency that was seen by Bloomberg. “Senior officials at Standard Chartered saw an investment in TMB shares as an opportunity that might ripen into an eventually larger ownership for the bank,” Sushil Kumar, the enforcement agency’s special director, said in the order. A representative for the British lender confirmed receipt of the order, adding that the bank was evaluating it and so unable to comment further. Escrow acco...

Private sector lender Tamilnad Mercantile Bank (TMB) has recorded a 57.66% jump in its net profit to Rs 407.69 crore for FY20, against Rs 258.58 crore in the previous fiscal. The bank’s deposits have increased to Rs 36,825.03 crore as compared to Rs 35,136.23 crore, with a growth rate of 4.81%, while the CASA position has increased to Rs 9,518.08 crore with a growth rate of 9.99%. The advances level of the bank has increased to Rs 28,236.18 crore with a growth rate of 4.51%, TMB said in a press release. The non-interest income of the bank stood at Rs 526.45 crore as compared to Rs 414.31 crore while the net interest income (NII) has increased to Rs 1,319.51 crore from Rs 1,230.16 crore. The bank’s interest income stood at Rs 3,466.11 crore with a 7.49% increase from previous year’s figure of Rs 3,224.46 crore. The release said the gross NPA as a percentage to total advances reduced to 3.62% from 4.32% and net NPA dropped to 1.80% from 2.40%. The capital adequacy ratio (Basel III) o...