Tamilnad Mercantile Bank's CEO Candidate Proposal Rejected By RBI

The Reserve Bank of India (RBI) has turned down the candidates proposed by Tamilnad Mercantile Bank (TMB) for the positions of managing director (MD) and chief executive officer (CEO). In a statement to the exchanges, the bank revealed that the RBI communicated that the proposed candidates were deemed unsuitable for the roles.

S Krishnan, the current MD & CEO of TMB, tendered his resignation in September 2023 citing personal reasons. However, he was asked to continue until a new CEO is appointed due to being the sole whole-time director on the bank's board. TMB accepted Krishnan's resignation and forwarded it to the RBI for further guidance.

Similarly, Dhanlaxmi Bank, another southern-based lender, is facing a similar situation as its CEO JK Shivan's tenure ended in January. Shivan has been requested to continue as CEO until a successor is appointed, as he is also the sole whole-time director on the bank's board. Dhanlaxmi Bank has also put forth candidates for the CEO position.

In a separate development, Tamilnad Mercantile Bank announced the appointment of Thomas Mathew, regional director at RBI Thiruvananthapuram, as an Additional Director for a two-year term, replacing SB Suresh Kumar, retired general manager from RBI.

Financially, Tamilnad Mercantile Bank reported a net profit of Rs 284 crore for the October-December 2023 quarter, up from Rs 280 crore in the corresponding period of the previous financial year. The bank's total business during the same quarter rose to Rs 85,185 crore from Rs 78,242 crore year-on-year.