Sun Jun 29 19:41:24 UTC 2025: **Summary:**
Karnataka Bank’s Managing Director & CEO, Srikrishnan Hari Hara Sarma, and Executive Director, Sekhar Rao, have resigned. Sarma cites personal reasons, including a desire to relocate to Mumbai, while Rao cites an inability to move to Mangaluru. Their resignations are effective July 15 and July 31, respectively. The bank has formed a search committee to find replacements and appointed a COO effective July 2. The bank addressed concerns raised in the FY25 Auditor’s Report, stating the issues have been resolved, and assures stakeholders of its financial stability.
**News Article:**
**Karnataka Bank Executives Resign, Search for Replacements Underway**
**MANGALURU – June 30, 2025** – Karnataka Bank announced the resignations of its Managing Director & CEO, Srikrishnan Hari Hara Sarma, and Executive Director, Sekhar Rao, effective July 15 and July 31, respectively.
In a late-night release, the bank stated that the Board of Directors has accepted the resignations and formed a search committee to identify suitable replacements for both positions.
Mr. Sarma attributed his resignation to personal reasons, including a decision to relocate back to Mumbai. Mr. Rao cited the inability to relocate to Mangaluru and other personal reasons for his departure. Both executives joined Karnataka Bank in 2023.
To ensure a smooth transition, the bank has appointed an experienced senior banker as the Chief Operating Officer (COO), who will assume the role on July 2. The bank also indicated that substitute arrangements are being made, pending regulatory approval.
The bank also addressed concerns stemming from the Notes to Accounts within the audited Financial Statements for FY25, which led to an Emphasis of Matter in the Auditor’s Report. Karnataka Bank stated that these issues have been discussed and resolved. It assured its stakeholders that the bank is well-capitalized and remains financially sound, emphasizing that its ongoing transformational journey would continue uninterrupted.
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