In a shocking turn of events, the CEO of a bank in India tendered his resignation just days after the bank mistakenly credited a staggering sum of Rs 9,000 crore to a Chennai-based cab driver.
The erroneous credit sent shockwaves through the banking sector and raised questions about internal control systems.
In his resignation letter Managing Director and CEO of Tamilnad Mercantile Bank Mr. S Krishna cited "personal reasons" for his decision, though many speculate that the controversy surrounding the massive credit blunder played a significant role in his departure.
The incident came to light when it was discovered that a Chennai cab driver, whose identity remains undisclosed, had received an unexpected windfall of Rs 9,000 crore in his bank account.
It is believed to be one of the most substantial mistaken credits in the history of the Indian banking sector.
While investigations into the matter are still ongoing, preliminary findings suggest that a clerical error or system glitch may have triggered the erroneous transaction.
Krishnan, who had been serving as the CEO of TMB, had about two-thirds of his term left when he decided to step down.
His resignation letter indicated that personal factors were the primary motivation behind his departure. However, it is difficult to ignore the timing of his resignation in the wake of this embarrassing mishap that has put the bank under a harsh spotlight.
Following Krishnan's resignation, the Board of Directors of the Thoothukudi-based bank convened a meeting to discuss the matter.
In a unanimous decision, they accepted Krishnan's resignation and swiftly forwarded it to the Reserve Bank of India (RBI) for formal approval.
This move indicates that the bank's leadership acknowledges the seriousness of the situation and is taking steps to address the fallout.