TMB shareholders take the legal route to fast track MD appointment

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Shareholders of the Thoothukudi-based Tamilnad Mercantile Bank (TMB) may initiate a fresh legal battle, having approached the Madras High Court against the bank and the Reserve Bank of India over the delayed appointment of TMB’s chief executive officer and managing director.


Krishnan Sankarasubramaniam, TMB’s managing director (MD) and chief executive officer (CEO), resigned from his position on September 28, 2023. He continues to serve until a new appointment is confirmed.


“The bank has already shared a shortlist of candidates with the RBI. However, a final decision is still pending,” said T V Lakshmanan, the lawyer representing the complainant. According to the complaint, the approval process should not exceed 90 days as per the regulatory timeline set by the RBI.


This development coincides with the resignation of P C G Asok Kumar, a non-executive director of TMB, who cited “compelling reasons” for his departure. He later attributed his decision to the bank’s failure to match the performance of its peers. Kumar, who holds more than one per cent of the bank’s paid-up capital, is a member of the stakeholders’ relationship and management committees. He played a significant role in the bank’s share listing in September 2022.

First Published: Mar 24 2024 | 6:24 PM IST