Karnataka Bank Ltd.'s share price fell over 7% in early trading on Monday after two senior management officials quit.
Chief Executive Officer and Managing Director Srikrishnan Sarma and Executive Director Sekhar Rao resigned on Sunday. Sarma's resignation will be effective from July 15, while Rao's resignation will be effective from July 31, the bank notified through a regulatory filing.
"Sarma has cited personal reasons, including his decision to relocate back to Mumbai, for his resignation. While, Rao has resigned citing inability to relocate to Mangaluru and other personal reasons," it added.
The exit follows an alleged dispute with the private sector bank's board on certain expenditures by the bank, which were made without appropriate approvals in May.
The bank further has appointed Raghavendra Srinivas Bhat as Chief Operating Officer effective July 2. Meanwhile, it has formed a search committee to identify suitable candidates for the position of a new managing director and CEO, as well as a new executive director.
"The bank has appointed an experienced senior banker as the Chief Operating Officer, who will assume charge on July 02, 2025. Additionally, substitute arrangements are also being made subject to the regulator's approval," according to an official press release.
Karnataka Bank Share Price Movement
Karnataka Bank share price fell as much as 7.5% intraday to a low of Rs 198 apiece.
Karnataka Bank share price fell as much as 7.5% intraday to a low of Rs 198 apiece. The scrip was trading 6.6% lower by 9:35 a.m. The benchmark NSE Nifty 50 was down 0.15%.
The stock has fallen 13% in the last 12 months and 9% on a year-to-date basis. The total traded volume so far in the day stood at two times its 30-day average. The relative strength index was at 51.
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