Tamilnad Mercantile Bank non-exec director quits for 'compelling reasons'

Bank's performance and share price mute compared to peers, says P C G Asok Kumar

P C G Asok Kumar, a non-executive director of Tamilnad Mercantile Bank (TMB) has resigned from his post for “compelling reasons”. He later said the bank's inability to match the performance of its peers is the reason for his resignation.

“Though I have one more month time to complete my tenure of directorship due to certain compelling reasons I wish to submit my resignation,” Kumar said in his resignation letter to the board of directors. Kumar holds more than 1 per cent of the bank’s paid up capital. He is a member of the stakeholders’ relationship and management committees and played a major role when the bank’s shares were listed in September 2022.

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Krishnan Sankarasubramaniam, TMB’s managing director (MD) and chief executive officer (CEO), did not respond to Business Standard’s phone call and messages for comment.

“The bank performance as well as the share price remains muted since listing,” Kumar told Business Standard. He said that he hoped after the central bank approves a new MD and CEO things change in favour of the bank and its performance improves. Asked why he had resigned, he said that he respects the sentiments of shareholders and wants to take onus on the bank's inability to match the performance of its peers especially Karur Vysya Bank and Federal Bank.

Krishnan resigned as the Tuticorin-based bank’s leader in September and is serving till a new appointment is made. He resigned as MD and CEO within thirteen months of his appointment in September 2022. Krishnan also served as the MD and CEO of Punjab and Sind Bank from September 4, 2020 to May 31, 2022.