Karnataka Bank shares fall nearly 6 pc as MD, ED resign

New Delhi, Jun 30 (PTI) Shares of Karnataka Bank on Monday fell by nearly 6 per cent after the private sector lender said its Managing Director & CEO Srikrishnan Hari Hara Sarma has resigned.

The company's stock dropped 5.75 per cent to end at Rs 195.75 apiece on the BSE. Intra-day, it tumbled 8.49 per cent to Rs 190.05.

On the NSE, it declined 5.65 per cent to settle at Rs 195.90 per share.

Besides, executive director Sekhar Rao has quit citing his inability to relocate to Mangaluru and other personal reasons, the bank said in a statement on Monday.

Sarma's resignation comes into effect from July 15.

The bank said Sarma cited personal reasons, including his decision to relocate to Mumbai, for quitting.

These resignations come amid reports of their dispute with the bank's board.

The bank has formed a search committee to identify suitable candidates for the positions of a new MD & CEO as well as ED, it said.

It has appointed an experienced senior banker as Chief Operating Officer (COO), who will assume charge on July 2, 2025, it said.

Additionally, it said, substitute arrangements are also being made subject to the regulator's approval. PTI SUM SUM SHW