Karnataka Bank MD and ED Resign Citing Personal Reasons; Shares Fall, Search Committee Formed

Karnataka Bank's Managing Director Srikrishnan Hari Hara Sarma and Executive Director Shekhar Rao have resigned due to personal reasons. Following their exit, the bank's shares declined. The board has accepted their resignations and constituted a search committee to appoint successors.

Karnataka Bank Managing Director (MD) and Chief Executive Officer (CEO) Srikrishnan Hari Har Sarma and Executive Director Shekhar Rao have resigned. After which the bank's stock fell by 5.61 percent on BSE on Monday afternoon. It came down to Rs 196.05. It opened at Rs 199.50 today and made a high level of Rs 204.83 and a low level of Rs 190.

The board of the bank has accepted the resignation of Srikrishnan Sarma. He has decided to step down due to family reasons and decision to transfer to Mumbai. His resignation will be effective from July 15, 2025. At the same time, Executive Director Shekhar Rao has resigned citing inability to transfer to Mangaluru and personal reasons, which will be effective from July 31, 2025.

The process of finding new leadership started

The bank has started looking for successors for both these key posts and a search committee has been formed for this. Meanwhile, Raghavendra Srinivas Bhat has been appointed as the new Chief Operating Officer (COO) of the bank. He will take charge from July 2, 2025 and will be based at the bank's headquarters in Mangaluru.