RBI rejects Tamilnad Mercantile Bank's proposal for CEO candidate

Bank has been asked to submit "fresh panel of candidates with suitable experience" for the position of chief executive

The Reserve Bank of India has rejected the names of the candidates proposed by Tamilnad Mercantile Bank (TMB) for the position of managing director (MD) and chief executive officer (CEO).

“We would like to inform you that we have received communication from the Reserve Bank of India that the candidates proposed by the Bank for the appointment of MD & CEO were not found suitable,” the lender informed the exchanges.

The regulator has asked the old generation private sector lender to submit a “fresh panel of candidates with suitable experience”, the bank indicated.

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S Krishnan — the current MD & CEO of the Tuticorin-based lender — resigned in September 2023 citing personal reasons but was asked to continue until a new CEO is appointed. This was because Krishnan was the only whole-time director on the board of the bank. The TMB board accepted the resignation of Krishnan, and it was forwarded to the RBI for guidance.

Another lender based in the southern part of the country, Dhanlaxmi Bank, is also in a similar position, with its CEO JK Shivan’s tenure having ended in January. However, he has been asked to continue as CEO until a new person takes charge. Shivan is the only whole-time director on the board of Dhanlaxmi. Dhanlaxmi has also proposed names of candidates for the CEO position.

Separately, the bank has also informed the exchanges that Thomas Mathew, regional director, Reserve Bank of India, Thiruvananthapuram, has been appointed as Additional Director of TMB for a period of two years from 12 April 2024 to 11 April 2026, or until further orders, whichever is earlier, replacing SB Suresh Kumar, general manager (retd), Reserve Bank of India.

Tamilnad Mercantile Bank reported a net profit of Rs 284 crore for the October-December 2023 quarter as compared to Rs 280 crore during the corresponding quarter of the last financial year.

The total business of the bank during the October-December 2023 quarter increased to Rs 85,185 crore from Rs 78,242 crore in the same period last year.