The Managing Director and CEO of the Tamilnad Mercantile Bank (TMB), S Krishnan, resigned from the post days after the bank mistakenly credited Rs 9,000 crore to a cab driver in Chennai. In his resignation letter, Krishnan said he decided to resign due to “personal reasons”.
“Though I still have about 2/3rd of a term to go, for personal reasons, I have decided to resign as Managing Director and CEO of the Bank,” Krishnan’s resignation letter reads.
Krishnan took charge as head of the bank in September 2022.
The Thoothukudi-based bank’s Board of Directors held a meeting on Thursday and accepted his resignation and forwarded the same to the Reserve Bank of India (RBI).
“S Krishnan, shall continue to be the MD and CEO, till the guidance/advice received from RBI, which shall be intimated in due course of time,” the bank said in a statement.
This development comes a week after a cab driver, who is an account holder of Tamil Nadu Mercantile Bank, was wrongly credited Rs 9,000 crore.
Initially, Rajkumar thought it would be a potential scam, and he transferred a smaller sum of Rs 21,000 to his friend to verify it. The transaction went smoothly. Within half an hour, the bank debited the rest of the amount from his account.
In June this year, the Income Tax Department had carried out a verification process on the bank and had reportedly flagged certain irregularities.