Chennai: Tamilnad Mercantile Bank (TMB) has announced that S Krishnan has resigned from the post of Managing Director and CEO of the bank.
The development comes a week after the Thoothukudi-based bank was accused of wrong credit of ₹,9000 crore in a taxi driver’s account. Krishnan took charge as the MD & CEO of the bank on September 4, 2022. “I have decided to resign. However, in as much as the Bank has only one whole time Director, I will seek the guidance of RBI in this regard,” he said in his resignation letter.
Also read: IT dept accuses Tamil Nadu Mercantile Bank of Rs 4,410 cr violations
On Thursday, the board accepted the resignation of Krishnan from the position of MD & CEO and forwarded his letter to the Reserve Bank of India for their guidance/advice, the private sector lender said in a regulatory filing.
Krishnan will continue to be the MD & CEO till the bank gets instruction form the RBI. Krishnan joined Tamilnad Mercantile Bank about 13 months ago. Though, he has about two-third of his term to go, he tendered his resignation citing personal reasons.
In July, Income Tax Department said the Tuticorin-based bank has not properly accounted for Rs 4,410 crore. The bank's head office was raided by the IT Department's Intelligence Division officers. While reviewing the accounts for the last five years, it has been revealed that the transactions were not properly accounted for in the Financial Transaction Statement.
Details of financial transactions of Rs 2,700 crore in 10,000 bank accounts and Rs 110 crore made through credit card were not provided, IT sources said. Also, no information was available about the investments amounting to Rs 200 crore in dividends and Rs 600 crore in shares along with Rs 500 crore in interest that was payable to the public, it was reported.
On June 27, a 16-member IT team from various districts of Tamil Nadu namely Chennai, Madurai, Trichy, Salem, and Coimbatore arrived in six vehicles at the bank's Tuticorin office. They investigated into the bank records in the presence of bank's CEO Krishnan and other key officials.
