3 GMs to take charge of Tamilnad Mercantile Bank ops after Krishnan’s exit

Tamilnad Mercantile Bank has constituted a three-member committee of executives including general managers to oversee its administration and operations. This comes after incumbent Managing Director (MD) and Chief Executive Officer (CEO) Sankarasubramaniam Krishnan expressed his desire to be relieved from duties.

Krishnan had resigned from the post of MD and CEO of the Tuticorin-based bank, on September 28 last year, citing personal reasons. It came after TMB by mistake transferred Rs 9,000 crore to the bank account of a Chennai cab driver. The transaction was reversed immediately.

Following this, TMB came out with the names of a list of selected candidates and submitted it to the Reserve Bank of India (RBI)  on November 22, 2023. However, it took several months for RBI to take a call on it, because of which Krishnan continued as an interim arrangement.

It was on April 12 this year that the RBI rejected the candidates cleared by TMB, citing them as not suitable for the post. The apex bank also asked TMB to come out with a fresh list of candidates. Based on this, it came out with an advertisement early last month.

The ‘Committee of Executives (CoE)’ would consist of S Narayanan, General Manager (Credit), D. Ramesh, General Manager (HR), and P.R. Ashok Kumar, General Manager (PDRM).

“Based on the request of Krishnan expressing his intent to get relieved from the position of MD and CEO for better prospects, the board sought approval of RBI for considering his request and to have a Committee of Executives as an interim arrangement,” the bank said in a stock exchange filing.

Following this, the RBI has approved the bank’s proposal to put in place an interim arrangement for the constitution of a CoE to oversee the operation and administration of the Bank, in the absence of the MD and CEO.

The new arrangement will be in place till the new MD and CEO assume charge or for three months from the date of relieving the incumbent, whichever is earlier. This is the first time in the history of the bank that a CoE is taking charge of its operations. “Cessation of the incumbent MD and CEO will be decided in due course of time,” it said.

In March, shareholders had filed an appeal to the Madras High Court to direct RBI to immediately clear a name as the MD and CEO. According to them, the Nomination and Remuneration Committee of the bank should have ensured the appointment within 90 days.

As per the latest advertisement, the applicant should not be less than 45 years old and more than 62 years old as of March 31, 2024, and must be a graduate or postgraduate from a recognised university. In addition, the candidate should have an overall experience of around 25 years.

First Published: Jun 02 2024 | 10:49 AM IST