In a surprise development, Tamilnad Mercantile Bank (TMB) has announced that S Krishnan has resigned from the post of MD & CEO of the bank.

The development comes a week after the Thoothukudi-based Bank was in the news for wrong credit of ₹,9000 crore into a taxi driver’s account.

Krishnan took charge as the MD & CEO of the bank on September 4, 2022.

“We would like to inform that S Krishnan MD & CEO of the bank, on September 28, tendered his resignation citing personal reasons. The Board in the meeting held on Thursday has accepted his resignation and forwarded the same to RBI. Krishnan shall continue to be the MD & CEO, till the guidance/advice is received from the RBI, which shall be intimated in due course of time, the bank said in a filing to stock exchanges.

“...Though I still have about 2/3rd of the term to go, due to personal reasons, I have decided to resign as Managing Director & CEO of the bank. However, in as much as the bank has only one whole time Director, I will seek the guidance of RBI in this regard,” according to a copy of the resignation letter of Krishnan.

Before joining TMB

Before joining TMB, Krishnan served as the MD & CEO of Punjab and Sind Bank from September 2020 to May 2022. He also worked as the Executive Director of Canara Bank from April 2020 to September 2020 and as Executive Director of Syndicate Bank from November 2017 to March 2020.

The old private sector bank was in the news for the wrong reasons in recent weeks. Last week, ₹9,000 crore was deposited to a car driver’s bank account by Tamilnadu Mercantile Bank in Chennai.

While the above transaction sent shockwaves across the banking sector, TMB clarified: “The NACH (National Automated Clearing House) credit file received from NPCI (National Payments Corporation of India) had some invalid account numbers, in some cases, the account numbers were of 16 digits, instead of correct 15 digits. When the file was processed in the NACH application, the amount field got prefixed with one digit (9) and the file was uploaded to CBS. The mistake was noticed immediately and the entries were reversed.

In June this year, the income tax department conducted raids at the headquarters of the Bank at Thoothukudi. The bank said the Intelligence and Criminal Investigation Directorate of Income Tax, Chennai, was conducting a spot verification of statutory compliances.