Tamilnad Mercantile Bank is the only unlisted bank in India and one of the oldest banks in Tamilnadu. It provides a gamut of services such as personal banking, corporate banking, and NRI services. Apart from this the Tamiland Bank also gives loans to MSME, and Agriculture sector. As per news sourced from Financial Express, the Tamilnad Bank has posted good financial results in FY19-20. If you see the overall credit growth of the Indian banking sector, it is just 7% last year i.e. in FY19-20. The TMB bank has shown total loan growth of 4.5% which is somewhere reflecting the problem in the Indian banking industry due to slowdown in the economic activities in our country. Financial Highlights of FY19-20

Particulars(Cr)	2019-20	Growth
Total Business	65061	4.58%
Total Deposits	36825	4.81%
Total Advances	28236	4.51%
Operating Profit	995	12.53%
Net Profit	407.69	9.99%
Net-Worth	3979.55	9.99%
Gross NPA	3.62%	-0.7
Net NPA	1.8	-0.6
PCR	80%	7.14%

Tamilnad Bank has a total loan book size of 28236 Cr as of 31.03.2020. In FY19-20, the bank has shown an operating profit of ~1000 cr and PAT of ~400 cr. The TMB bank has ROE of 10.28% in FY19-20, anything above 10% is considered good. Gross NPA has also come down by 0.70 basis points which is excellent. Valuation As of 31.03.2020, the total equity of the Tamilnad bank is 142.51 Cr and with FV of 10, the total shares outstanding are 14.251 Cr. Total Net-Worth as on 31.03.2020 is 3979 Cr. Book Value = 279 As of 25.06.2020, the current unlisted price of TMB bank is 385. Accordingly, it is available at P/B of 1.37x ( undervalued ) as compared to other same size banks in the listed space.