Tamilnad Mercantile Bank Receives ₹58.91 Crore Tax Demand Notice from Income Tax Department

Private sector lender Tamilnad Mercantile Bank Ltd (TMB) announced on Tuesday, March 11, that it has received a Notice of Demand under Section 156 of the Income Tax Act, 1961, from the Income Tax Department’s Assessment Unit for the assessment year 2017-18.

In a regulatory filing, the bank stated, “We wish to inform that the Bank has received a Notice of Demand under Section 156 of the Income Tax Act, 1961, from the Assessment Unit, Income Tax Department for the regular assessment under Section 143(3), pertaining to A.Y. 2017-18.”

Tax Demand and Disallowances

The notice pertains to a tax demand of ₹58.91 crore, arising due to certain additions and disallowances made during the assessment under Section 143(3) of the Income Tax Act. The bank has indicated that it is preparing to challenge the order within the prescribed timelines.

Bank to Challenge the Order

Tamilnad Mercantile Bank has stated that it is in the process of contesting the demand through the appropriate legal forum. “The bank is in the process of challenging the said order in the appropriate forum against disallowances/additions made in the said order within the prescribed timelines,” the lender confirmed in its filing.

No Material Impact on Financials or Operations

Despite the tax demand, the bank has assured stakeholders that it does not foresee any material impact on its financials, operations, or overall business activities. “The Bank does not reasonably expect the aforesaid demand notice to have any material impact on its financials, operations, or other activities,” the statement added.

Stock Performance 

On March 12, 2025, Tamilnad Mercantile Bank share price traded 0.82% lower at ₹409.10 at 9:24 AM (IST). Tamilnad Mercantile Bank’s share price reached a 52-week high of ₹509.95, and a 52-week low of ₹403.35. As per BSE, the total traded volume for the stock stood at 4379 shares with a turnover of ₹17.93 lakhs.

At the current price, Tamilnad Mercantile Bank shares are trading at a price-to-earnings (P/E) ratio of 5.68x, based on its trailing 12-month earnings per share (EPS) of ₹72.23, and a price-to-book (P/B) ratio of 0.77, according to exchange data.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.