Tamilnad Mercantile Bank Limited (TMB) has announced a significant addition to its senior management team. The bank has appointed Davis Jose Thettayil as the Head of Information Technology, taking on the role of Executive Vice President. This strategic move, effective from October 15, 2025, aims to bolster the bank's technological capabilities and drive its digital initiatives forward.

Key Appointment Details

Extensive Experience in Banking Technology

Thettayil brings a wealth of experience to his new role at TMB. With a career spanning three decades in the banking sector, he has developed expertise in several crucial areas:

• Information and Communication Technology
• Digital Banking
• Data Science
• Banking Operations

His proficiency extends to the evaluation and procurement of vendor-supplied software solutions and the necessary IT infrastructure. Notably, Thettayil's ability to work effectively with both executive and technical teams positions him well to bridge the gap between strategic decision-making and technological implementation.

Implications for Tamilnad Mercantile Bank

This appointment signals TMB's commitment to enhancing its technological capabilities. In an era where digital transformation is reshaping the banking landscape, Thettayil's extensive experience is expected to play a crucial role in:

1. Advancing the bank's digital banking initiatives
2. Improving operational efficiency through technology
3. Enhancing data-driven decision-making processes
4. Strengthening the bank's IT infrastructure and security

The appointment of Davis Jose Thettayil as the IT head comes at a time when banks are increasingly focusing on technological advancements to stay competitive and meet evolving customer expectations. His leadership in the IT department is likely to be instrumental in shaping TMB's technological strategy and execution in the coming years.

Tamilnad Mercantile Bank's decision to bring on board a seasoned professional like Thettayil underscores the growing importance of technology in the banking sector and the bank's proactive approach to staying at the forefront of digital innovation.

Tamilnad Mercantile Bank (TMB) has been hit with a penalty order of Rs 11.44 lakh from the Assistant Commissioner of Income Tax, TDS Circle, Madurai, for the assessment year 2013-14. The penalty, issued under sections 271C and 274 of the Income Tax Act, comes after the Income Tax Appellate Tribunal (ITAT) dismissed the bank's appeal.

Penalty Details

The penalty stems from TMB's failure to deduct Tax Deducted at Source (TDS) on interest payments to depositors that exceeded the maximum non-taxable limit. This occurred despite the bank receiving Form 15G/15H from the depositors, which are typically used to claim exemption from TDS.

Bank's Response

In a regulatory filing, TMB stated that it plans to challenge the order in the appropriate forum within the prescribed timelines. The bank has expressed confidence that the penalty will not have a significant impact on its financials, operations, or other activities beyond the penalty amount itself.

Regulatory Compliance

The incident highlights the importance of strict adherence to tax regulations, particularly for financial institutions handling large volumes of transactions. It serves as a reminder for banks to maintain robust systems for TDS compliance, even when dealing with seemingly exempt transactions.

Financial Performance

Despite this setback, TMB has reported strong growth in its recent business update:

These figures indicate that TMB continues to show robust growth across key financial metrics, suggesting that the penalty is unlikely to significantly impact the bank's overall financial health.

As the bank prepares to contest the penalty order, stakeholders will be watching closely to see how this regulatory challenge unfolds and whether it leads to any changes in TMB's internal processes for tax compliance.