Karnataka Bank share price declines over 7% as CEO, Executive Director resign; check details

Karnataka Bank, in its press release, said that the lender's board has accepted the resignation of the Managing Director & CEO, Srikrishnan Hari Hara Sarma, on June 29. The resignation will be effective from July 15, 2025. Sarma has cited personal reasons, including his decision to relocate back to Mumbai, for his resignation.

The Bank’s 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 July 31, 2025, the press release added.

The press release further said that 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.

It 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, Karnataka Bank said.

On the Notes to Accounts contained in the audited Financial Statements for FY25 leading to the Emphasis of Matter in the Auditor’s Report, the bank stated that it has been discussed and amicably resolved.

The lender 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.

Karnataka Bank Q4 FY25 Results

The private sector lender reported an 8% year-on-year (YoY) dip in net profit at ₹252.4 crore for the fourth quarter that ended March 31, 2025, against ₹274.2 crore in Q4 FY24.

For the full year FY25, Karnataka Bank reported a net profit of ₹1,272.37 crore, registering a 2.6% YoY decline versus ₹1,306.28 crore logged in FY24, according to news reports.

Net interest income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, fell 6.4%, to ₹780.7 crore against ₹834.1 crore registered in the corresponding quarter of FY24.