Why is T N Merc. Bank falling/rising?

As of 03-Sep, Tamilnad Mercantile Bank Ltd's stock price is currently at 426.80, reflecting an increase of 2.9 (0.68%). The stock has been gaining for the last two days, with a return of 0.89% during this period. Despite this short-term positive movement, the stock has underperformed over the longer term, with a decline of 9.56% over the past year. The bank's high Capital Adequacy Ratio of 25.68% and attractive valuation metrics, such as a ROA of 1.8 and a Price to Book Value of 0.7, suggest a solid financial foundation. However, the flat results reported for June 25, including the lowest operating profit to net sales ratio and significant reliance on non-operating income, raise concerns about its operational efficiency. Additionally, the lack of investment from domestic mutual funds may indicate a lack of confidence in the stock's current valuation.
In the broader market context, the stock has shown a short-term return of +0.90% over the past week, while the benchmark Sensex has declined by 0.27%. This indicates that Tamilnad Mercantile Bank Ltd is performing better than the overall market in the short term. However, its year-to-date performance is down by 5.68%, contrasting with the Sensex's gain of 3.11%. The stock's long-term performance has also been below par, generating negative returns compared to the BSE500 over various time frames. This combination of short-term gains amidst long-term underperformance and operational challenges contributes to a mixed outlook for the stock.