Karnataka Bank shares fall after top boss, board member resign

“A committee has been set up to identify suitable replacements for the roles,” the bank said

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.