 "K V Rama Moorthy")
K V Rama Moorthy was the chief of the bank during its initial public offering (IPO) in September 2022.
After the Reserve Bank of India (RBI) rejected the names of the candidates proposed by Tamilnad Mercantile Bank (TMB) for the position of managing director (MD) and chief executive officer (CEO) in April, the bank has now submitted three fresh names, all from public sector banks, to the regulator for its top job. This comes at a time when its former MD and CEO K V Rama Moorthy has been inducted into the board as a non-executive director to maintain continuity.
Moorthy was the chief of the bank during its initial public offering (IPO) in September 2022. After he stepped down, though Krishnan Sankarasubramaniam took charge of the bank, he resigned in September last year, citing personal reasons. This came a week after TMB had erroneously transferred Rs 9,000 crore to the bank account of a Chennai cab driver. The transaction was reversed immediately. According to a source aware of the development, the bank has shortlisted three people for the post of MD and CEO, and the RBI is likely to make a decision within 90 days.
The Thoothukudi-headquartered bank at present has a three-member committee of executives (COEs) to oversee its administration and operations, which includes S Narayanan, general manager (credit); D Ramesh, general manager (HR); and P R Ashok Kumar, general manager (PDRM). When asked about the inclusion of Moorthy, the source said, “He was instrumental in our IPO and had interacted with investors and analysts during that time. He understands the expectations of shareholders, and hence there will be continuity.” The bank is expected to see its total business touching Rs 1 trillion during the current financial year.
At present, around 93 per cent of its business comes from the retail, agriculture, and micro, small and medium enterprise (MSME) sectors. “We have a diversified basket because of this. Our bank mainly caters to small traders, and going forward, the RAM (retail, agriculture, and MSME) segment will contribute around 80-90 per cent of our business,” he added. The bank indicates that one of its major advantages in the longer run is the average age of its employees, which is 35 years.
First Published: Aug 04 2024 | 6:09 PM IST
