Overview

• MD & CEO Srikrishnan Hari Hara Sarma and Executive Director Sekhar Rao submitted resignations on June 29, with Sarma stepping down on July 15 and Rao on July 31 after auditors flagged ₹1.53 crore of unapproved expenditures.
• Raghavendra Srinivas Bhat, a 38-year bank veteran, will take charge as chief operating officer on July 2 to oversee operations during the transition.
• The board has formed a search committee to identify permanent successors for both the CEO and executive director roles.
• Shares of Karnataka Bank plunged more than 7% on June 30 as investors grappled with uncertainty over the sudden leadership changes.
• The bank assured stakeholders that it remains well capitalized and its strategic transformation agenda will proceed without interruption.