The Karnataka Bank Limited has informed the Exchange regarding a press release dated Jun 29, 2025, titled "Resignation of MD & CEO and Executive Director".
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Karnataka Bank's Board has accepted the resignation of its Managing Director & CEO, Mr. Srikrishnan Hari Hara Sarma, effective July 15, 2025, citing personal reasons and his decision to relocate back to Mumbai. Executive Director Mr. Sekhar Rao has also resigned, effective July 31, 2025, citing inability to relocate to Mangaluru and personal reasons. A Search Committee has been formed to identify new candidates for both positions. An experienced senior banker has been appointed as Chief Operating Officer (COO), taking charge on July 2, 2025, to ensure operational continuity. The Bank also mentioned that the Emphasis of Matter in the Auditor's Report for FY25 has been amicably resolved. The Bank has reassured stakeholders that it remains well-capitalized, operationally stable, and committed to its ongoing transformation.
Simultaneous exit of the MD & CEO and Executive Director within a short window can create short-term leadership uncertainty and may weigh on the stock. However, the swift appointment of a COO and formation of a Search Committee suggest the Bank is working to minimise disruption. Investors should watch for updates on new appointments, as leadership transition is a key risk factor.