Jun 30, 04:24 AM

Karnataka Bank Shares Slide as Top Executives Quit Over Audit Row

Karnataka Bank said Managing Director and Chief Executive Officer Srikrishnan Hari Hara Sarma and Executive Director Sekhar Rao resigned late Sunday, citing personal reasons. The departures were disclosed in regulatory filings ahead of the June-quarter close, ending weeks of speculation about a leadership shake-up at the Mangaluru-based lender. The exits follow auditor observations that the two executives authorised spending of about Rs 1.53 crore beyond their delegated powers without board ratification. Although the amounts are small, the findings heightened corporate-governance concerns and reportedly caused friction between the whole-time directors and other board members. The board has accepted the resignations and set up a search committee to select successors. Raghavendra Srinivas Bhat, currently a senior executive, will take charge as chief operating officer on 2 July while the bank seeks regulatory approval for interim leadership arrangements. Sarma’s resignation becomes effective on 15 July and Rao’s on 31 July. Investors reacted sharply; Karnataka Bank shares fell as much as 8% to Rs 192 in Monday morning trading on the BSE before paring some losses. The bank said it remains well-capitalised and operationally stable despite the management churn.

#Karnataka Bank #Srikrishnan Hari Hara Sarma #Sekhar Rao #Mangaluru #Raghavendra Srinivas Bhat #Sarma #Rao

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