Tamilnad Mercantile Bank MD quits days after ₹9,000 crore wrongly credited to cab driver’s account

Tamilnad Mercantile Bank (TMB) Managing Director and CEO, S Krishnan submitted his resignation on Thursday citing personal reasons. The resignation of the top official comes a week after the bank wrongly credited ₹9,000 crore to a Chennai cab driver. In a regulatory filing, TMB informed about a board meeting on Thursday during which the resignation of S Krishnan was accepted.

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TMB added that the bank has updated the Reserve Bank of India (RBI) about the resignation for their guidance and S Krishnan will continue as MD and CEO till the guidance or advice is received from the central bank.

“It has been about thirteen months since I joined this Bank. In these times, we have taken various measures to fortify the Bank and make it future ready. These include Business Process Engineering, a Digital Transformation, Strengthening the systems and procedures to make it more robust, enhancing the skill set, strengthening the risk matrix, imbibing the compliance culture etc.," S Krishnan said in the resignation letter which was enclosed by TMB with the regulatory filing.

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"Though I still have about 2/3rd of term to go, due to personal reasons, I have decided to resign as Managing Director & CEO of the Bank. However, in as much as the Bank has only one whole time Director, I will seek the guidance of RBI in this regard,” it added.

Wrongly credited ₹9,000 crore

The resignation comes a week after the bank mistakenly credited ₹9,000 crore in the bank account of a Chennai cab driver. At first, the driver thought it was some scam, but then he attempted to transfer ₹21,000 to his friend, and to his surprise the transaction was successful.

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However, the bank debited the balance amount within minutes, a report by news platform India Today said.