CHENNAI: Private sector Tamilnad Mercantile Bank (TMB) has constituted a three-member Committee of Executives (CoE) comprising general managers to oversee its administration and operations. The interim arrangement comes in the backdrop of the incumbent MD&CEO, S Krishnan, who tendered his resignation in September last year, expressed his intent to be relieved from the position. This is for the first time in the history of the century-old-bank that it will be administered by CoE, according to banking sector sources.
RBI has approved TMB’s proposal to constitute the CoE after Krishnan expressed his desire to get relieved from his position for better prospects, the bank informed the stock exchange on Saturday. The CoE consisting of S Narayanan, GM (Credit), D Ramesh, GM (HR) and P R Ashok Kumar, GM (PDRM) will be in place till the new MD & CEO assumes charge or for a period of three months from the date of incumbent MD&CEO being relieved. “The board will be meeting shortly to decide on the date of me being relieved,” Krishnan told TOI.
All India Bank Employees Association general secretary C H Venkatachalam said there are precedents of operations of the nationalised banks being run by CoEs. “This interim arrangement is done in the wake of the sudden resignation of MD&CEO and it will consume some time to appoint the successor. But the case is different with TMB because the RBI has rejected the choice of names suggested by the bank for the appointment of a new MD&CEO. In fact, this is for the first time that TMB will be administered by CoE,” he said.
The Tuticorin-headquartered bank submitted three names for the approval of the RBI to be appointed as the MD & CEO in November last year after Krishnan tendered his resignation in September. However, RBI rejected the proposal, following which TMB restarted the search for a new MD & CEO this April. The bank reported a total business of Rs 89,485 crore in the quarter ended March 31, 2024.
