Tamilnad Mercantile Bank sends 4 names to RBI for MD & CEO and ED posts

Tamilnad Mercantile Bank

Thoothukudi-based Tamilnad Mercantile Bank (TMB) has sent four names to the Reserve Bank of India (RBI) for the selection of managing director, chief executive officer, and executive director post, people aware of the development told Moneycontrol.

The fresh list of candidates was sent to RBI after it rejected the earlier list of candidates proposed by the bank.

On May 13, the bank sought fresh applications from candidates for the post of managing director and chief executive officer (MD & CEO).

According to a newspaper advertisement, the bank has invited applications for the post of MD & CEO on a contract basis for a period of three years. The bank had asked candidates to submit their application by May 24.

Sources cited above said that few names in the list for MD and CEO position are ex officials of state run banks such as State Bank of India and Indian Bank.

Further, the source said for the executive director position, names may be shortlisted from a few candidates with experience in the private banking space.

The posting of the candidate will be at the bank’s head office at Tamil Nadu, advertisement said.

According to the advertisement, the applicant should not be less than 45 years and more than 62 years as on March 31, 2024, and must be graduate or post graduate from a recognised university, as per the advertisement.

Further, the candidate should have overall experience of at least 25 years in different verticals or domains in banking or financial services in India.

A requirement said to be imposed by the regulator is that MD and ED candidate must have prior board-related experiences. "This is one of the reasons why earlier names recommended by the search committee was turned down," said a person aware of the matter.

Sources added that particularly for the executive director’s position, which is a more operations-oriented role, the bank is looking for a candidate familiar with Tamil because most of their corporate loan clients are Tamil speaking.

On April 12, the RBI had rejected the list of candidates sent by TMB, saying the candidates are not found suitable for the post. Also, the central bank asked the bank to submit a fresh list of candidates with suitable experience.

In September 29, 2023, S. Krishnan had resigned from the post of MD & CEO days after the bank mistakenly credited Rs 9,000 crore to a cab driver in Chennai. After this, the bank’s board on November 22, 2023, has finalized the names of three candidates for the position.