Tamilnad Mercantile Bank has issued a corrigendum to correct a grammatical error in its earlier intimation regarding the resignation of its Managing Director and CEO, S. Krishnan. The bank has taken proactive steps to address the situation and ensure a smooth transition in its top leadership.

RBI Guidance Sought

In light of the resignation, Tamilnad Mercantile Bank reached out to the Reserve Bank of India (RBI) for guidance on how to proceed. The central bank has provided clear directives to the bank on the matter.

RBI's Directives

The RBI has advised Tamilnad Mercantile Bank to take immediate action on two fronts:

1. Initiate the process to identify a regular MD&CEO
2. Submit an application for approval of the new candidate

Interim Arrangement

While the search for a new leader is underway, the RBI has allowed for an interim arrangement. S. Krishnan, the current MD&CEO, will continue in his role until his successor assumes office. This arrangement is in accordance with Section 10B (5A) of the Banking Regulation Act, 1949, ensuring continuity in the bank's operations during this transition period.

Timeline for Application Submission

The RBI has set a specific deadline for Tamilnad Mercantile Bank to provide a timeline for submitting the application for the new MD&CEO. The bank is required to furnish this information by October 31, 2023.

This development underscores the importance of proper succession planning and regulatory compliance in the banking sector. Tamilnad Mercantile Bank's prompt action in seeking RBI's guidance and its commitment to following the regulator's directives demonstrate its focus on maintaining strong corporate governance practices.

Shareholders and customers of Tamilnad Mercantile Bank can be assured that the bank is working diligently to ensure a smooth leadership transition while adhering to regulatory requirements.

Tamilnad Mercantile Bank (TMB), a century-old private sector bank, has announced a strategic partnership with Bajaj Allianz General Insurance Company Ltd. (BAGIC) to broaden its non-life insurance product offerings. This collaboration marks a significant step in TMB's efforts to provide comprehensive financial solutions to its customers.

Expanded Insurance Portfolio

The partnership will enable TMB to offer a wide range of non-life insurance products, including:

• Motor insurance
• Health and personal accident insurance
• Asset protection covers for loan customers
• Cyber insurance

These products will be accessible through TMB's extensive network of 587 branches across 17 states and 4 Union Territories, as well as through the bank's digital platforms.

Strategic Growth and Customer-Centric Approach

Mr. Salee S Nair, Managing Director & CEO of TMB, emphasized the bank's commitment to providing complete financial solutions under one roof. He stated, "Partnering with Bajaj Allianz General Insurance will allow us to offer customers robust, tech-driven protection plans while supporting our strategy to grow fee-based income."

This new tie-up aligns with TMB's strategy to enhance its non-life insurance portfolio. As per IRDAI guidelines, TMB, registered as a corporate agent, can partner with up to nine companies for marketing non-life insurance products. The addition of BAGIC complements TMB's existing partnerships with United India Insurance Company Ltd., Cholamandalam MS General Insurance Company Ltd., and Zurich Kotak General Insurance Company Ltd.

Seamless Integration and Support

To ensure a smooth insurance experience for both liability and asset customers, BAGIC will provide TMB with:

• A dedicated service team
• Free training for staff
• IT integration
• Web portal linkages

This collaboration builds upon TMB's successful association with Bajaj Allianz Life Insurance Company Ltd. (BALIC), which began in December 2022.

About Tamilnad Mercantile Bank

Tamilnad Mercantile Bank, headquartered in Thoothukudi, Tamil Nadu, boasts a rich history of over 100 years in the banking industry. With a strong track record of continuous profitability, TMB serves more than 5.30 million customers through its pan-India presence. The bank's commitment to combining its century-long legacy with modern financial solutions positions it as a trusted one-stop financial solutions provider for its diverse customer base.

This strategic partnership with Bajaj Allianz General Insurance reinforces TMB's dedication to offering comprehensive, technology-driven financial products and services, further solidifying its position in the competitive banking sector.