 "Tamilnad Mercantile Bank")
Tuticorin-based Tamilnad Mercantile Bank (TMB) has constituted a three-member Committee of Executives (COEs) to oversee its administration and operations.
The move comes after incumbent Managing Director (MD) and Chief Executive Officer (CEO) Krishnan Sankarasubramaniam expressed his desire to be relieved from duties.
Sankarasubramaniam resigned on September 28 last year, citing personal reasons.
The bank, however, asked him to continue on an interim arrangement until further guidance from the Reserve Bank of India (RBI).
Barely a week before Sankarasubramaniam tendered his resignation, the TMB had erroneously transferred Rs 9,000 crore to the bank account of a Chennai cab driver. The transaction was reversed immediately.
The TMB then came out with the list of candidates and submitted it to the RBI on November 22. However, the RBI took several months to take a call on it.
On April 12 this year, the RBI rejected the candidates cleared by TMB, citing they were not suitable for the post. The apex bank also asked the TMB to come out with a fresh list of candidates. Based on this, it came out with an advertisement early last month.
The CoEs will consist of S Narayanan, General Manager (Credit), D Ramesh, General Manager (HR), and PR Ashok Kumar, General Manager (PDRM).
“Based on the request of Krishnan expressing his intent to be relieved from the position of MD and CEO for better prospects, the Board sought the approval of RBI for considering his request and to have CoEs as an interim arrangement," the bank said in a stock exchange filing.
The RBI has approved the bank’s proposal to put in place an interim arrangement for the constitution of a CoE to oversee the operation and administration of the bank, in the absence of MD and CEO.
The interim arrangement will be in place till the new MD and CEO assumes charge or for three months from the date of relieving the incumbent, whichever is earlier. This is for the first time in the history of the bank that a CoE is taking charge of its operations.
"The cessation of the incumbent MD and CEO will be decided in the due course of time," it said.
In March, the shareholders filed an appeal with the Madras High Court to direct the apex bank to clear the name of the MD and CEO. According to them, the nomination and remuneration committee of the bank should have ensured the appointment within 90 days.
According to the latest advertisement, the applicant should not be less than 45 years and more than 62 as on March 31, 2024, and must be a graduate or a post- graduate from a recognised university. In addition, the candidate should have an overall experience of around 25 years.
TMB was founded in 1921 as the Nadar Bank but changed its name to Tamilnad Mercantile Bank in November 1962 to widen its appeal beyond the Nadar community.
