CHENNAI: Private sector Tamilnad Mercantile Bank has recommended the names of three individuals for the post of Managing Director and CEO to the Reserve Bank of India, a top official said on Monday.

The Thoothukudi-based bank said it has developed a mechanism towards ensuring big fund transactions take place after getting an approval from a concerned officer.

The development follows the transfer of funds to the tune of Rs 9,000 crore to the savings account of a cab driver in 2023, which was due to a ‘technical glitch’.

“The names of three individuals have been recommended to the Reserve Bank of India and it is currently under the RBI (seeking its approval)”, the bank’s Managing Director and CEO S Krishnan told reporters on the appointment of a new MD and CEO.

Asked about the consecration of Ram Lalla idol at the Ayodhya Temple on Monday, he said the bank officials discussed opening of a new branch in Ayodhya during the board meeting held earlier in the day. “This is under active consideration. Hopefully, I will officially make an announcement on this”, he said.

“The (transfer of Rs 9,000 crore) incident happened in the September quarter (of 2023). I had told then that the incident occurred due to a technical glitch and within small time, the amount of Rs 21,000 which was withdrawn was recovered. There was no financial loss to the bank” , Krishnan said while responding to another query.

To ensure such incidents does not occur again, a mechanism has been put in place for auto-transfer of funds up to a ‘ceiling’ and if a fund transfer is above a prescribed limit, the system would alert a ‘concerned officer’ seeking his approval, he added.

A committee has been formed to look into the accountability on the incident and the process was currently on by the bank authorities.

Noting that Tamilnad Mercantile Bank has reported a net profit for the October-December 2023 quarter at Rs 284 crore, Krishnan said the bank has been focused on continuously improving the profits during the last three quarters.

“I am able to control the slippages and credit cost has also come down substantially. We have been very cost conscious and I have grown in CASA (Current Accounts, Savings Account),” he said to a query on the factors that contributed to a rise in net profit.

On the outlook, Krishnan said the bank expects some pressure on the margins during the fourth quarter of the current financial year across industry. Referring to the devastating floods that occurred in December 2023 affecting normal life in Thoothukudi, Tirunelveli, Kanniyakumari and Tenkasi districts, he said he did not expect much impact on the business during the current quarter.