The Board of Directors of Karnataka Bank has accepted the resignation of the bank’s Managing Director & CEO, Srikrishnan Hari Hara Sarma, on Sunday. A press release posted on the stock exchanges said 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 bank 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.
Meanwhile, the bank has appointed Raghavendra Srinivas Bhat as the Chief Operating Officer (COO) of the bank with effect from July 2, 2025. Bhat would be a Senior Management Personnel of the bank and based at the Registered and Head Office at Mangaluru. Additionally, substitute arrangements are also being made subject to the regulator’s approval, a statement from the bank said.
On the Notes to Accounts contained in the audited Financial Statements for the 2024-25 leading to Emphasis of Matter in the Auditor’s Report, the bank states that it has been discussed and amicably resolved.
It is to be noted here that the statutory auditors of the bank -- Ravi Rajan and Co LLP and RGN Price and Co – had said in their report on May 14: “We draw attention to Note 14 of the Standalone Financial Results, which states that the total expenditure includes an amount of ₹1.16 crore incurred in connection with engaging consultants & other revenue expenditure and total fixed assets include capital expenditure amounting to ₹0.37 crore, which were incurred beyond the delegated powers of the whole-time directors and was not ratified by the Board. Consequently, the said amount is recoverable from the concerned directors. However, no effect has been given in the accounts in respect of the recoverable amount. Our opinion is not modified in respect of this matter.”
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, the statement said.