Tamilnad Mercantile Bank (TMB), based in Thoothukudi, has recently submitted three new names to the Reserve Bank of India (RBI) for the positions of Managing Director (MD), Chief Executive Officer (CEO), and Executive Director. The RBI is expected to make a decision within the next 90 days.
This move follows the central bank’s rejection of the candidates proposed by TMB in April. The decision to submit new nominees comes at a critical time for the bank, which has recently seen a shift in leadership. Former MD and CEO KV Rama Moorthy, who led the bank through its initial public offering (IPO) in September 2022, has been appointed as a non-executive director to ensure continuity during the transition.
Moorthy’s appointment is seen as a strategic move to maintain stability and continuity within the bank. His involvement during the IPO and his interactions with investors and analysts are considered valuable for aligning with shareholder expectations.
After Moorthy’s departure, Krishnan Sankarasubramaniam took over as CEO but resigned in September of the previous year, citing personal reasons. This resignation occurred shortly after a high-profile error where approximately Rs 9,000 crore was mistakenly transferred to a Chennai cab driver’s account, though the transaction was quickly reversed.
Currently, TMB is being overseen by a three-member Committee of Executives (COEs) comprising S. Narayanan (General Manager, Credit), D. Ramesh (General Manager, HR), and P.R. Ashok Kumar (General Manager). The bank’s total business is projected to approach Rs 1 trillion this financial year.
Approximately 93% of TMB’s business is derived from the retail, agriculture, and micro, small, and medium enterprise (MSME) sectors. This diversified focus is expected to continue driving the bank’s growth, with the RAM (retail, agri, MSME) segment anticipated to contribute around 80-90% of its business in the future.
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