Karnataka Bank Ltd shares fell sharply on Monday, dropping as much as 7.56 percent to an intraday low of Rs 192 following key resignations at the top leadership level. Following the bank's announcement of the departure of its Executive Director, Sekhar Rao, and Managing Director and CEO, Srikrishnan Hari Hara Sarma, there was a notable market reaction.

Karnataka Bank has named Raghavendra Srinivas Bhat, a seasoned insider, as its new Chief Operating Officer amid a senior-level turnover. He began working for the bank in 1981 as a clerk and has almost forty years of experience in the same company.

Key Highlights

• Karnataka Bank shares plunged ~8% after resignations of MD & CEO Sarma and ED Rao.
• Clerk-turned-COO Raghavendra Srinivas Bhat appointed from July 2 to ensure operational continuity.

The bank highlighted Bhat's wide-ranging contributions over his 38-year career in an official statement. Bhat has held important roles in a range of banking operations and ascended through the ranks to become COO in the Chief General Manager cadre. The bank's changing strategy depends on his knowledge of banking, finance, human resources, IT and digital banking, treasury and forex management, insurance (third-party products), and the rural economy.

Being from an agricultural family, Bhat has a solid grasp of rural finance and services related to agriculture, which has enabled the bank to better match its operations with the economic needs of the local community. His leadership has been crucial in directing high-level strategic decisions during his more than ten years of top management experience.

Also Read: Karnataka Bank MD & CEO Srikrishnan Hari Steps Down from His Position

"Additionally, substitute arrangements are also being made subject to the Regulator's approval," says the bank. "The bank continues to take the necessary steps to ensure operational stability and assures various stakeholders that it is well-capitalized and remains sound as before. The bank's transformational journey will continue unhindered," it added.