Tamilnad Mercantile Bank MD resigns, after bank does wrong credit

S Krishnan stepped down as the MD& CEO of the TMB after the bank last week mistakenly credited ₹9,000 crore in the bank account of a Chennai-based cab driver

Tamilnad Mercantile Bank

Mumbai: Tamilnad Mercantile Bank (TMB) managing director and chief executive officer (MD & CEO) S Krishnan on Thursday puts in his paper on Thursday citing personal reasons. His resignation followed a week after the bank wrongly credited ₹9,000 crore to a Chennai cab driver.

The TMB, in a regulatory fining, apprised the board members about the development and added that it had updated the central bank, Reserve Bank of India (RBI), about Krishnan’s resignation. It said that Krishnan will continue as MD and CEO till the guidance or advice is received from the central bank.

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TMB MD & CEO S Krishnan

In the resignation letter, Krishnan said, “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. These include Business Process Engineering, a Digital Transformation, Strengthening the systems and procedures to make it more robust, enhancing the skill set, strengthening the risk matrix, imbibing the compliance culture etc.”

The letter further said that though Krishnan still had about 2/3rd of term to go, he had decided to step down as the MD and CEO of the Bank due to his personal issues. “However, in as much as the bank has only one whole time director, I will seek the guidance of RBI in this regard,” Krishnan added in the letter.

Bank wrongly credited ₹9,000 crore

The TMB had last week mistakenly credited ₹9,000 crore in the bank account of a Chennai-based cab driver last week. Initially, the driver presumed it to be part of the scam, but to his utter surprise he realised that it was real transaction when he successfully transferred ₹21,000 to his friend’s account.

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A senior officer of the TMB said that they had debited the balance amount soon after the bank realised the mistake. “We got the rest amount debited back to the bank within minutes,” said the officer.

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