Market Performance
- Karnataka Bank's share price dropped sharply by 6.6% on Monday, June 30, settling at ₹193.97.
- The stock has declined nearly 21% from its 52-week high of ₹245.
- The decline comes amid a significant leadership shakeup at the Mangaluru-headquartered lender.
Main News: Top Leadership Resigns
In a surprising development, Karnataka Bank's Managing Director and CEO, Hari Hara Sarma, and Executive Director, Sekhar Rao, have both tendered their resignations.
- Both resignations were submitted on Sunday evening, citing personal reasons.
- Hari Hara Sarma's resignation will take effect from July 15.
- Sekhar Rao's resignation is effective from July 31.
The MD cited relocation to Mumbai as a personal reason, while the ED pointed to his inability to relocate to Mangaluru, among other individual factors.
Company Details: Immediate Restructuring Steps
Karnataka Bank has already initiated efforts to manage the leadership vacuum:
- A search committee has been established to find replacements for both the MD & CEO and Executive Director positions.
- A senior banker has been appointed as Chief Operating Officer (COO), who will assume charge on July 2.
- The bank has confirmed that additional substitute arrangements are being made, pending regulatory approval.
Despite the top-level exits, Karnataka Bank has moved quickly to ensure operational stability.
Summary of the Article
The Karnataka Bank share price witnessed a steep fall of nearly 7% following the resignation of its MD & CEO and Executive Director. Both exits have been attributed to personal reasons involving relocation decisions. In response, the bank is actively pursuing succession plans and has appointed a COO to manage operations in the interim.
The news triggered a sharp market reaction, causing the stock to decline by 21% from its 52-week high. Investors and stakeholders will be closely observing the bank's next strategic moves as it navigates this sudden leadership change.
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