A week after Rs 9,000 crore was wrongly credited into a taxi driver’s account, Tamilnad Mercantile Bank managing director and CEO S Krishnan has resigned from the post.
A week after Rs 9,000 crore was wrongly credited into a taxi driver’s account, Tamilnad Mercantile Bank (TMB) managing director and CEO S Krishnan has resigned from the post.
Krishnan, who took charge of the bank on 4 September 2022, tendered his resignation citing personal reasons.
“Though I still have about 2/3rd of a term to go, for personal reasons, I have decided to resign as MD and CEO of the bank,” Krishnan stated in his resignation letter.
The bank’s board of directors held a meeting on Thursday and accepted his resignation. The matter has been forwarded to the Reserve Bank of India (RBI) for its guidance.
"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 filing to stock exchanges.
The wrong credit of such a whopping amount to a cab driver in Chennai sent shockwaves across the banking sector.
“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,” the bank clarified.
The 102-year-old bank was in the news for the wrong reasons in June this year when the Income Tax department conducted raids at the headquarters of the bank at Thoothukudi in Tamil Nadu. The bank said the Intelligence and Criminal Investigation Directorate of Income Tax, Chennai, was conducting a spot verification of statutory compliances.
Before joining TMB, Krishnan served as the MD and CEO of Punjab & 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. He spearheaded the merger process of Syndicate Bank with Canara Bank.
