Karnataka Bank MD and Executive Director resign

Karnataka Bank Managing Director and CEO Srikrishnan Hari Hara Sarma and Executive Director Sekhar Rao have resigned from their positions.

Accepting their resignations, the Board of Directors of the Bank on Sunday constituted a search committee to identify a new MD & CEO and Executive Director, said a late-night release from the Bank.

Executive Director Sekhar Rao
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While Mr. Sarma’s resignation would be effective from July 15, Mr. Rao’s resignation would be effective from July 31. They had joined the Bank on June 9, 2023 and February 1, 2023, respectively.

The release quoted Mr. Sarma, citing personal reasons, including his decision to relocate back to Mumbai, as the reason for his resignation. Mr. Rao has cited the inability to relocate to Mangaluru and other personal reasons.

The Bank has appointed an experienced senior banker as the Chief Operating Officer (COO), who will take charge on July 2. Substitute arrangements are also being made, subject to the Regulator’s approval.

On the Notes to Accounts contained in the audited Financial Statements for the FY25 leading to an Emphasis of Matter in the Auditor’s Report, the Bank stated that it has been discussed and amicably resolved. 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 would continue unhindered, the release added.