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The Hindu
a day ago
- Business
- The Hindu
Karnataka Bank shares fall after top boss, board member resign
Shares of Karnataka Bank fell as much as 8.5% on Monday (June 30, 2025), and were headed for their worst session in nearly five months, a day after the Indian lender's top boss and a board member stepped down. The shares trimmed some of the early losses to trade 5% lower at 2:50 p.m. IST. On Sunday (June 29, 2025), the bank said its MD and CEO, Srikrishnan Hari Hara Sarma, had resigned, citing 'personal reasons, including his decision to relocate back to Mumbai'. Sekhar Rao, an executive director and a member of the board, also resigned due to personal reasons. A committee has been set up to identify suitable replacements for the roles, the bank said, adding that it is taking necessary steps to ensure operational stability. The bank is 'well-capitalised' with a capital adequacy ratio of over 19.85%, 'which reflects the soundness of the bank's financial position', it said in a statement on Monday (June 30, 2025). 'A committee has been set up to identify suitable replacements for the roles,' the bank said.
Indian Express
a day ago
- Business
- Indian Express
Why Karnataka Bank's top brass stepped down amid auditor red flags
The Board of Directors of 100-year old Karnataka Bank on Sunday accepted the resignation of the bank's Managing Director and CEO Srikrishnan Hari Hara Sarma and Executive Director Sekhar Rao amid red flags raised by the auditors about certain spending. Sarma has cited personal reasons, including his decision to relocate back to Mumbai, for his resignation. His resignation will be effective from July 15. Rao submitted his resignation citing inability to relocate to Mangaluru and other personal reasons. His resignation will be effective from July 31. While the Mangaluru-based bank, with 957 branches, has no specific promoter, the entire stake is held by public, NBFCs, FPIs and mutual funds. As of the quarter ended March 31, 2025, Karnataka Bank reported total deposits of Rs 1.04 lakh crore. The bank's shares fell by 5.51 per cent to Rs 196.25 on the BSE on Monday morning session. The resignations of Karnataka Bank's MD and ED came roughly six weeks after the bank's auditors raised concerns over certain expenditures made by the two executives. These expenses, which exceeded their delegated authority and were not approved by the board, included Rs 1.53 crore in spending deemed recoverable from the concerned directors—comprising Rs 1.16 crore on consultants and Rs 37 lakh on revenue and capital items. While the official reason cited for their exit was personal, including relocation-related factors, the timing suggests deeper issues, said an analyst, adding that the auditor's findings pointed to governance lapses and internal friction, prompting uncertainty among investors and triggering a broader leadership shake-up at the bank. On the Notes to Accounts contained in the audited Financial Statements for the FY25 leading to emphasis of matter in the Auditor's Report, the bank stated that 'it has been discussed and amicably resolved'. The bank has formed a search committee to identify suitable candidates for the position of a new Managing Director & CEO as well as a new Executive Director. 'The bank has appointed an experienced senior banker as the Chief Operating Officer (COO) who will assume charge on July 02, 2025. Additionally, substitute arrangements are also being made subject to the regulator's approval,' the bank said in an exchange filing. 'The bank continues to take necessary steps to ensure operational stability and assures various stakeholders that it is well capitalised and continues to be sound as hitherto. The transformational journey embarked upon by the bank will continue unhindered,' the filing said.
United News of India
a day ago
- Business
- United News of India
Karnataka Bank top officials resign
Bengaluru, June 29 (UNI) The Board of Directors of Karnataka Bank today formally accepted the resignation of its Managing Director and Chief Executive Officer, Srikrishnan Hari Hara Sarma, effective July 15. Sarma cited personal reasons, including a decision to relocate to Mumbai, for stepping down from his post. In another major development, the Bank's Executive Director, Sekhar Rao, has also tendered his resignation citing his inability to relocate to the Bank's headquarters in Mangaluru along with other personal considerations. His resignation will take effect on July 31. Following these developments, the Bank has constituted a Search Committee tasked with identifying suitable candidates for both the MD & CEO and Executive Director positions. To ensure operational continuity, Karnataka Bank has appointed a senior banker as its Chief Operating Officer (COO), who will assume charge on July two. The Bank also informed that necessary substitute arrangements are being undertaken, subject to regulatory approval. Addressing queries related to the Emphasis of Matter included in the Auditor's Report for FY2024-25, the Bank clarified that the issue had been discussed and amicably resolved. Reassuring its stakeholders, the Bank reiterated its financial strength, stating it remains well-capitalised and stable. 'The transformational journey initiated by the Bank will continue unhindered,' the official statement added. UNI BDN SS
Business Standard
a day ago
- Business
- Business Standard
Karnataka Bank drops after MD & CEO, Srikrishnan Hari Hara Sarma resigns
Karnataka Bank declined 7.27% to Rs 192.60 after the bank's board has accepted the resignation of managing director (MD) & chief executive officer (CEO), Srikrishnan Hari Hara Sarma, effective from 15 July 2025. Srikrishnan Hari Hara Sarma resigned citing personal reasons, including his decision to relocate back to Mumbai. The banks executive director, Sekhar Rao has also submitted his resignation citing inability to relocate to Mangaluru and other personal reasons. The resignation has been accepted by the board and will be effective from 31 July 2025. Additionally, the board has approved the appointment of Raghavendra Srinivas Bhat as the chief operating officer (COO), effective from 2 July 2025. The bank has formed a search committee to identify suitable candidates for the position of a new MD & CEO as well as a new executive director. Karnataka Bank, a leading 'A' Class Scheduled Commercial Bank in India, was incorporated on 18th February 1924 at Mangaluru. The Bank fell 3.90% to Rs 199.40 after the bank's net profit fell 7.97% year-on-year to Rs 252.37 crore in Q4 March 2025. The bank's total income rose 2.55% YoY to Rs 2,686.69 crore in Q4 FY25.
Entrepreneur
a day ago
- Business
- Entrepreneur
Karnataka Bank MD Srikrishnan Sarma and ED Sekhar Rao Step Down
You're reading Entrepreneur India, an international franchise of Entrepreneur Media. The Board of Directors of Karnataka Bank has accepted the resignation of its Managing Director and CEO, Srikrishnan Hari Hara Sarma. His resignation, due to personal reasons and a decision to relocate to Mumbai, will be effective from July 15, 2025. The Bank's Executive Director, Sekhar Rao, has also stepped down citing personal reasons, including the inability to relocate to Mangaluru. His resignation will take effect from July 31, 2025. In response, the Bank has set up a Search Committee to identify suitable candidates for both leadership roles. An experienced senior banker has been appointed as Chief Operating Officer (COO), who will take charge on July 2, 2025. Other interim arrangements are being made, pending regulatory approval. Addressing concerns raised in the Auditor's Report for FY25, the Bank confirmed that the issues noted in the "Emphasis of Matter" section have been discussed and amicably resolved. Karnataka Bank has assured stakeholders that it remains financially sound and well capitalised. The leadership transition will not impact its ongoing transformation efforts, and the Bank remains committed to ensuring operational stability and long-term growth.
