Srikrishnan Hari Hara Sarma, Karnataka Bank's Managing Director and CEO, has resigned. According to a bank release, Sarma resigned due to personal reasons, including his decision to relocate back to Mumbai. The Board of Directors of Karnataka Bank has accepted his resignation, which will take effect on July 15, 2025.
Sekhar Rao, the bank's Executive Director, has also resigned, citing an inability to relocate to Mangaluru and other personal reasons. His resignation has been accepted by the Board and will become effective on July 31, 2025.
Key Highlights
- Karnataka Bank MD & CEO resigns effective July 15; Executive Director also steps down July 31 for personal reasons.
- Shares plunged ~7–8% post-resignation; board forms search committee and appoints interim COO from July 2.
The Bank has set up a search committee to find suitable candidates for the positions of Managing Director & CEO and Executive Director. It has also appointed an experienced senior banker as its Chief Operating Officer (COO), who will take over on July 2, 2025. Additionally, substitute arrangements are being made, subject to regulatory approval.
Regarding the Notes to Accounts in the audited financial statements for FY25, which resulted in an Emphasis of Matter in the Auditor's Report, the Bank stated that the issue was discussed and resolved amicably.
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The Bank reiterated that it is taking the necessary steps to ensure operational stability and assured stakeholders that it is well-capitalized and financially sound. The Bank's transformational journey will continue unhindered, according to the release.
