Deep-Dive Into Tamilnad Mercantile Bank Prospectus; Insights On Banking In Tamil Nadu: ICICI Securities
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Our analysis of Tamilnad Mercantile Bank Ltd. throws some interesting insights on the banking industry (in general) and banking in Tamil Nadu (in particular):
Tamil Nadu - a leading industrialised state in India, ranks second after Maharashtra in gross state domestic product;
Tamil Nadu has the highest per capita GDSP at current prices amongst industrialised states;
lower bank credit to gross domestic product ratio indicates potential for further lending in the state;
under-penetration of the Indian banking sector provides opportunities - the current bank credit-to-GDP ratio stands at 58% as of Q4 2020 and is amongst the lowest;
credit growth to revive sharply in FY22 despite Covid-19 second wave - private bank credit growth continues to outpace public bank growth in the medium term.
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