ilmscore | Tamilnad Mercantile Bank Limited | IPO Review | CA Rachana Ranade

Tamilnad Mercantile Bank Limited | IPO Review | CA Rachana Ranade

Published: 2022-09-03
Status: Available | Analyzed

Predictions from this Video

Total: 3
Correct: 0
Incorrect: 0
Pending: 3
Unrated: 0
Prediction
Topic
Status
The Indian banking sector has significant room for loan growth, with current loans to the private sector as a percentage of GDP at 55%, compared to 217% in the USA.
"India loans to GDP okay loans to private sector has a GDP that's only 55 percent and if you want to compare this with a developed country like USA that is 217 percent so can I say again there's a lot of head room left for the loan growth for the entire industry answer is again obviously yes right"
Indian Banking Sector Loan Growth
Pending
Lending by private sector banks in India is steadily increasing, as evidenced by their share of total loans disbursed rising from 29% in FY 2015 (100-71) to 42% in FY 2022 (100-58).
"in the fiscal 2015 out of the total loans disbursed out 71% share was of public banks so if I were to just simplify this let us say 100 rupees loans were disbursed out of that 71 rupee loans were disbursed by whom by public banks but now in fiscal year 22 public sector bank loans I mean loans which have been disbursed by public sector banks are only 58 can I say that this indirectly means that lending by private sector banks is slowly and steadily increasing right"
Private Sector Bank Lending in India
Pending
The Tamilnadu Mercantile Bank IPO is being offered at a valuation of 9.10 PE multiple, which is lower than the industry average of 11.85 PE multiple.
"Valuation is at 9.10 copy multiple as compared to the industry pe multiple of 11.85 definitely uh it's it's lower as compared to the industry standard but uh lower than industry PE but now you know the reason also as to why it may be at a little bit of discount."
Tamilnadu Mercantile Bank IPO Valuation
Pending