No financial loss to bank, says TMB in communication to NSE, BSE over wrongly credited Rs 9k crore

TMB had suspended its Chennai-Service Branch manager P Govinda Rajan in connection with the issue.

Published: 23rd September 2023 08:27 AM  |   Last Updated: 23rd September 2023 08:27 AM   |  A+A-

Tamilnad Mercantile Bank, TMB

Tamilnad Mercantile Bank logo used for representational purpose. (Photo | Google play)

By Express News Service

THOOTHUKUDI:  With regard to the reversal of the wrongly credited Rs 9,000 crore to a Chennai-based cab driver's bank account, the Tamilnad Mercantile Bank (TMB) has informed the National Stock Exchange of India (NSE) and Bombay Stock Exchange (BSE) that the bank had incurred no financial loss due to the incident. TMB had suspended its Chennai-Service Branch manager P Govinda Rajan in connection with the issue.

TMB Company Secretary and Compliance Officer Prakash Chandra Panda, in a communication to the managers of NSE and BSE, clarified that the National Automated Clearing House (NACH) credit file received from National Payments Corporation of India (NPCI) had some invalid account numbers, and in some cases, the account numbers were of 16 digits, instead of correct 15 digits. When the file was processed in the NACH application, the amount field was prefixed with one digit (9) and the file was uploaded to Core Banking Solutions (CBS). The mistake was noticed immediately and the entries were reversed, Panda said.

"We have now introduced additional checks for authorising the NACH credit transactions. There was no financial loss to the bank in this regard," said the clarification in pursuant to Regulation 30(11) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015.

According to reports, Chennai-based cab driver Rajkumar got an SMS stating that Rs 9,000 crore was deposited to his savings bank account at a time when his account balance was only Rs 105. Though he transferred Rs 21,000 to his friend, the TMB officials found the mistake and managed to reverse the transaction.

Meanwhile, a top official said that there was no major change in the stock price of the bank and the stocks were traded at normal prices. An investor said the stock price went down by -1.31% and closed at Rs 546.7 per share on Thursday. "On Friday, the stock price opened at Rs 549.10 and closed at Rs 538.50, dipping by a further 1.53%," the investor added.

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