Tamilnad Mercantile Bank managing director S Krishnan resigned from his position citing “personal reasons”, merely 13 months of assuming charge.
His resignation came barely within a week of the alleged mistake by the bank of transferring Rs 9,000 crore to an account belonging to a taxi driver in Chennai, raising doubts on whether the two events are somehow linked.
The bank did not respond to the queries from ET till press time.
Krishnan joined the bank just about 13 months back.
“Though I still have about two-third of term to go, due to personal reasons, I have decided to resign as managing director & CEO of the bank. However, as the bank has only one whole time director, I will seek the guidance of RBI in this regard,” Krishnan wrote in his resignation letter dated September 28, 2023.
The bank board accepted the resignation while seeking RBI’s guidance on the matter. The bank said that Krishnan would continue to be at the helm of affairs till it receives the central bank’s communication, the bank said in a stock exchange filing.
“It has been about thirteen months since I joined this bank. In these times, we have taken various measures to fortify the bank and make it future ready,” Krishnan said in his letter to the board.
He credited himself for measures such as business process engineering, digital transformation, strengthening the systems and procedures, enhancing skill set, strengthening the risk matrix and imbibing the compliance culture. “With these various measures taken, I am sure that the bank will reap the fruit sooner than later,” he added.
The bank’s share price rose 1.2% to Rs 546.80 on BSE Friday, the day after the MD’s resignation.
