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Tamilnad Mercantile BankNSE:TMB -1.77%54 Dividend Payout Ratio is 0.48 as of Jun. 2026, which is 380% above its 10-year median of 0.10. GuruFocus rates NSE:TMB with a GF Score™ of 54/100 and a GF Value™ of ₹606.00 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,175 Banks companies, Tamilnad Mercantile Bank ranks better than 64.94% on this metric.
The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period. Tamilnad Mercantile Bank's Dividend Payout Ratio for the
months ended in Jun. 2026 was 0.48.
The historical rank and industry rank for Tamilnad Mercantile Bank's Dividend Payout Ratio or its related term are showing as below:
NSE:TMB'
s Dividend Payout Ratio Range Over the Past 10 Years
Min: 0.07 Med: 0.1 Max: 0.26
Current: 0.26
During the past 7 years, the highest Dividend Payout Ratio of Tamilnad Mercantile Bank was 0.26. The lowest was 0.07. And the median was 0.10.
NSE:TMB's Dividend Payout Ratio is ranked better than 64.94% of 1175
companies
in the Banks industry
Industry Median: 0.32
vs NSE:TMB: 0.26
During the past 7 years, the highest Trailing Annual Dividend Yield of Tamilnad Mercantile Bank was 3.02%. The lowest was 0.84%. And the median was 1.95%.
During the past 12 months, Tamilnad Mercantile Bank's average Dividends Per Share Growth Rate was 135.00% per year.
During the past 3 years, the average Dividends Per Share Growth Rate was 30.10% per year.
During the past 7 years, the highest 3-Year average Dividends Per Share Growth Rate of Tamilnad Mercantile Bank was 30.10% per year. The lowest was 30.10% per year. And the median was 30.10% per year.
The growth rate is calculated with least square regression.
For more information regarding to dividend, please check our Dividend Page.
* Please note that "special dividend" is not included in the calculation of dividend per share and related fields.
Tamilnad Mercantile Bank (NSE:TMB) Dividend Payout Ratio Explanation
In dividends investing, Dividend Payout Ratio and Dividend Growth Rate are the two most important variables for consideration. A lower payout ratio may indicate that the company has more room to increase its dividends.
Tamilnad Mercantile Bank Dividend Payout Ratio Related Terms
Tamilnad Mercantile Bank Dividend Payout Ratio Historical Data
* Premium members only.
The historical data trend for Tamilnad Mercantile Bank's Dividend Payout Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Tamilnad Mercantile Bank Dividend Payout Ratio Chart
Tamilnad Mercantile Bank Dividend Payout Ratio Competitor Comparison
For the Banks - Regional subindustry, Tamilnad Mercantile Bank's Dividend Payout Ratio, along with its competitors' market caps and Dividend Payout Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Tamilnad Mercantile Bank Dividend Payout Ratio vs Banks Industry
For the Banks industry and Financial Services sector, Tamilnad Mercantile Bank's Dividend Payout Ratio distribution charts can be found below:
* The bar in red indicates where Tamilnad Mercantile Bank's Dividend Payout Ratio falls into.
Tamilnad Mercantile Bank Dividend Payout Ratio Calculation
The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period.
Tamilnad Mercantile Bank's Dividend Payout Ratio for the fiscal year that ended in Mar. 2026 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Tamilnad Mercantile Bank (NSE:TMB) has a Dividend Payout Ratio of 0.48 as of Jun. 2026. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on Tamilnad Mercantile Bank and its competitors. This is 380% above median its historical median of 0.10. Over the past decade, Tamilnad Mercantile Bank's Dividend Payout Ratio has ranged from 0.07 to 0.26. According to the industry distribution chart, Tamilnad Mercantile Bank ranks #412 out of 1175 companies in the Banks industry, placing it in the top 35.1%.
Is Tamilnad Mercantile Bank's Dividend Payout Ratio too high?
Tamilnad Mercantile Bank's current Dividend Payout Ratio of 0.48 is 380% above median its 10-year median of 0.10. Over the past 10 years, this metric has ranged from a low of 0.07 to a high of 0.26. The Banks industry median Dividend Payout Ratio is 0.32. Tamilnad Mercantile Bank's value of 0.48 is 50% above this industry median. Based on the distribution chart, Tamilnad Mercantile Bank ranks #412 out of 1175 companies in the Banks industry, which is above the industry midpoint. Overall, Tamilnad Mercantile Bank has a GF Score™ of 54/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tamilnad Mercantile Bank's Dividend Payout Ratio compare to competitors?
According to the Banks industry distribution chart, Tamilnad Mercantile Bank ranks #412 out of 1175 companies for Dividend Payout Ratio. This puts Tamilnad Mercantile Bank in the upper half of its industry. The industry median Dividend Payout Ratio is 0.32. Tamilnad Mercantile Bank's value of 0.48 is 50% above this benchmark. Historically, Tamilnad Mercantile Bank's own Dividend Payout Ratio has ranged from 0.07 to 0.26 over the past decade. While the company's 10-year median is 0.10 vs. the industry median of 0.32, Tamilnad Mercantile Bank has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Dividend Payout Ratio for a Banks company?
The median Dividend Payout Ratio among Banks companies is 0.32, based on 1,175 companies in the industry. Companies in the top quartile (top 25%) have a Dividend Payout Ratio significantly above this median, while those in the bottom quartile fall well below. However, Dividend Payout Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tamilnad Mercantile Bank's current Dividend Payout Ratio of 0.48 is 50% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Dividend Payout Ratio mean?
A high Dividend Payout Ratio can signal that a stock is expensive relative to its fundamentals. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on Tamilnad Mercantile Bank and its competitors. For the Banks industry, the median Dividend Payout Ratio is 0.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tamilnad Mercantile Bank's current Dividend Payout Ratio is 0.48, which is 380% above median its own 10-year median of 0.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tamilnad Mercantile Bank stock overvalued right now?
Based on GuruFocus' analysis, Tamilnad Mercantile Bank (NSE:TMB) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹606.00, compared to a current price of ₹865.20 — trading 42.8% above its estimated fair value. The current Dividend Payout Ratio is 0.48, which is 380% above median its 10-year median of 0.10 and 50% above the Banks industry median of 0.32. Tamilnad Mercantile Bank's overall GF Score™ is 54/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Dividend Payout Ratio calculated?
Dividend Payout Ratio is calculated from a company's financial statements. For Tamilnad Mercantile Bank (NSE:TMB), the current Dividend Payout Ratio is 0.48 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Tamilnad Mercantile Bank (NSE:TMB) Overvalued in 2026?
Based on GuruFocus' analysis, Tamilnad Mercantile Bank stock appears to be overvalued.
The current stock price of ₹865.20 is trading 42.8% above its estimated GF Value™ of ₹606.00.
GuruFocus considers Tamilnad Mercantile Bank to be Significantly Overvalued.
Key valuation signals for NSE:TMB:
Dividend Payout Ratio: 0.48 (380% above median its 10-year median of 0.10)
GF Value™: ₹606.00 vs. price of ₹865.20 (42.8% above fair value)
Industry Position: 50% above the Banks median (#412 of 1175)
No single metric tells the full story. See the NSE:TMB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tamilnad Mercantile Bank Ltd is engaged in providing a wide range of banking & financial services involving retail, corporate banking and para-banking activities in addition to treasury and foreign exchange business. The company has a portfolio of advances and deposits from a diversified customer base including retail customers, agricultural customers, and MSMEs. The segments of the bank are Treasury, Corporate and Wholesale banking, Retail banking, and Other banking Operations. It generates the majority of its revenue from the Retail banking segment.
54GF Score
Get the complete analysis for NSE:TMB
Dividend Payout Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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