Case Title The Tamilnad Mercantile Bank Story
Case Author(s) Subhadra. K A. Mukund
University ICFAian Centre for Management Research, India
Abstract The case provides insights into the tussle for control over Tamilnad Mercantile Bank (TMB), a scheduled commercial bank based in south India with operations all over India. Its continued strong performance attracted corporate interest in 1994. Looking for entry into the sector, the Essar Group bought stake from the Nadar community members, a group of promoters. However, the Essar Group could not get the management control as another faction of the Nadar community investors resisted it. Unable to gain management control, the Essar Group sold its stake to another corporate giant from south India, Sterling Computers. Delineating the internal rivalry amongst the community based promoters', the case describes how arbitration helped the Nadar community to resolve the issue and retain management control.
Available In ECCH Case Collection
Publisher European Case Clearing House
Publisher Case No. 202-020-1
Distributor(s) European Case Clearing House
Pub/Rev Date 2002
ISBN
Case Length 6
Teaching Note Yes
Pub TN Ref No. 202-020-8
Pages (TN) 4
Issues Ruias Take over bid, Tamilnad Mercantile Bank, role of Nadars in the Tamilnad Mercantile Bank, feuds in the company board, Sivasankaran - Sterling Computers. Role of R B I in the whole tussle.
Organisation(s) Tamilnad Mercantile Bank Essar Steel
Countries India
Industry Financial Services
Period Covered 1994-2001
Level Postgraduate
Links of Interest Tamilnad Mercantile Bank's website















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