Wed Jul 16 14:07:56 UTC 2025: **Summary:**
Raghavendra S. Bhat, the newly appointed MD and CEO of Karnataka Bank, has reassured customers and investors about the bank’s financial health following the recent resignations of the previous MD and CEO, Srikrishnan Hari Hara Sarma, and executive director Sekhar Rao. Bhat emphasized the bank’s strong fundamentals, high capital adequacy ratio, and consistent profitability. He also refuted rumors about potential mergers or relocation of the bank’s headquarters. Bhat, who has been with the bank since 1981, expressed his commitment to maintaining the bank’s legacy of supporting agriculture, MSMEs, and underserved sectors.
**News Article:**
**Karnataka Bank Assures Stability Amid Leadership Changes**
**MANGALURU, July 16, 2025** – Karnataka Bank’s newly appointed Managing Director and CEO, Raghavendra S. Bhat, moved quickly to reassure customers and investors of the bank’s solid financial standing following a period of executive departures. Bhat addressed the media on Wednesday, following the resignation of Srikrishnan Hari Hara Sarma as MD and CEO, effective July 15, and the impending resignation of executive director Sekhar Rao at the end of the month.
“The fundamentals of Karnataka Bank are very strong,” Bhat stated emphatically. “Customers and investors have no reason to worry about the health of this institution.”
His remarks aimed to dispel concerns circulating in media and on social platforms about the bank’s financial stability in light of the leadership changes. Bhat highlighted the bank’s robust capital adequacy ratio, which stands at 19.85% as of March 31, far exceeding the statutory requirement of 11.5%. He also noted the bank’s consistent profitability and dividend history since its inception.
When questioned about whether the board’s decision to appoint leaders from outside the bank’s traditional internal structure had been unsuccessful, Bhat emphasized that change is a natural process. He also firmly dismissed rumors of a potential merger with another bank or a relocation of the headquarters to Bengaluru. Bhat clarified that Karnataka Bank has no single promoter, with approximately 65% of the stake held by individual investors.
Bhat, a veteran of the bank who started as a clerk in 1981 and rose to the position of Chief Operating Officer before retiring in 2019, returns to lead the institution during this transitional period. He reiterated the bank’s commitment to supporting agriculture, MSMEs, and underserved sectors, in line with its founding principles. He appealed for the cooperation of employees, customers, and investors to continue the bank’s legacy.
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