CEO Of Bank That Mistakenly Credited Rs 9,000 Cr To Cab Driver Resigns

S Krishnan, the Managing Director and CEO of Tamilnad Mercantile Bank (TMB), has resigned following the bank's inadvertent transfer of Rs 9,000 crore to a Chennai cab driver. Krishnan cited "personal reasons" for his decision in his resignation letter.

Krishnan assumed his role in September 2022. TMB's Board of Directors convened a meeting, accepted Krishnan's resignation, and forwarded it to the Reserve Bank of India (RBI).

The bank stated, "S. Krishnan shall continue to be the MD and CEO until further guidance/advice is received from the RBI, which will be communicated in due course."

This development unfolded a week after the erroneous transfer of Rs 9,000 crore to a cab driver who held an account with Tamil Nadu Mercantile Bank. Initially, the cab driver, Rajkumar, suspected a potential scam and transferred a smaller amount of Rs 21,000 to a friend to verify the transaction, which was successful. However, the bank debited the remaining amount from his account within half an hour.

Earlier in June, the Income Tax Department had conducted a verification process on the bank and had reportedly identified certain irregularities.