Karnataka Bank shares slump 8% after CEO, ED exit; clerk turned COO steps in

Shares of Karnataka Bank Ltd slumped sharply on Monday, plunging as much as 7.56 per cent to touch an intraday low of Rs 192 following key resignations at the top leadership level. The significant market reaction came after the bank announced the exit of its Managing Director and CEO Srikrishnan Hari Hara Sarma and Executive Director Sekhar Rao.

Amid the senior-level churn, Karnataka Bank has appointed an experienced insider, Raghavendra Srinivas Bhat, as its new Chief Operating Officer (COO). He brings in nearly four decades of experience within the same organisation, having begun his journey with the bank as a clerk back in 1981.

In an official statement, the bank highlighted Bhat’s extensive contributions over his 38-year career. Rising through the ranks to eventually become COO in the Chief General Manager cadre, Bhat has played key roles across a wide spectrum of banking operations. His expertise spans Banking, Finance, Human Resources, IT and Digital Banking, Treasury and Forex Management, Insurance (Third Party Products), and the Rural Economy — areas that are crucial to the bank’s evolving strategy.

A native of an agriculturist family, Bhat’s deep-rooted understanding of rural finance and agriculture-linked services has been a significant asset in aligning the bank’s operations with grassroots economic needs. Having held top management roles for over ten years, his leadership has been instrumental in guiding strategic decisions at the highest levels.

“Additionally, substitute arrangements are also being made subject to the Regulator’s approval,” Karnataka Bank stated. “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 will continue unhindered,” it added.