Wed Jul 02 16:54:44 UTC 2025: Okay, here’s a news article summary and rewrite based on the provided text:

**Summary:**

Karnataka Bank’s Chairman Pradeep Kumar Panja has issued a statement reassuring customers about the bank’s financial stability amidst rumors and recent executive departures. He emphasized the bank’s profitability, strong capital adequacy ratio, and liquidity, stating that customer deposits are safe. He attributed executive exits to personal reasons, though sources within the bank cited differences with the board. While some withdrawals occurred recently, deposits have outweighed them, indicating continued customer trust. The bank is seeking RBI approval for an interim CEO and MD and searching for a permanent replacement.

**News Article:**

**Karnataka Bank Reassures Customers Amidst Executive Departures, Rumors**

**Mangaluru, India – July 2, 2025** – Karnataka Bank Chairman Pradeep Kumar Panja has moved to publicly allay concerns regarding the financial health of the Mangaluru-based private sector lender following recent executive departures and swirling market rumors.

In a statement released Wednesday, Panja asserted that the bank is “sound, strong, and financially stable,” emphasizing its continuous profitability since its inception in 1924. “No customer has to worry about the safety of their deposits,” he declared to The Hindu. “Their money is absolutely safe.”

The statement comes after the resignations of CEO and MD Srikrishnan Hari Hara Sarma and Executive Director Sekar Rao. While Panja attributed these departures to “personal reasons,” an anonymous source within the bank suggested that disagreements with the board also contributed to the exits.

Despite the rumors, Panja insisted that Karnataka Bank maintains a robust financial position, citing a capital adequacy ratio of 13% – exceeding the Reserve Bank of India’s (RBI) 11.5% requirement – and strong liquidity. He acknowledged some deposit withdrawals in recent days but claimed that new deposits significantly outweighed them.

“There is no trust issue or fear in the minds of customers, and there is no need for any concern,” Panja stated, highlighting that the bank’s ownership structure, entirely held by shareholders, makes a hostile takeover difficult.

Karnataka Bank has reportedly sought RBI approval for an interim CEO and MD and has established a search committee to find a permanent replacement. The bank hopes to restore stability and customer confidence quickly.

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