(Reuters) -Shares of Karnataka Bank fell as much as 8.5% on Monday, and were headed for their worst session in nearly five months, a day after the Indian lender’s top boss and a board member stepped down.
The shares trimmed some of the early losses to trade 5% lower at 2:50 p.m.
IST.
On Sunday, the bank said its Managing Director and Chief Executive Officer, Srikrishnan Hari Hara Sarma, had resigned, citing “personal reasons, including his decision to relocate back to Mumbai”.
Sekhar Rao, an executive director and a member of the board, also resigned due to personal reasons.
Sarma’s resignation is effective July 15, while Rao will step down on July 31, the bank said.
A committee has been set up to identify suitable replacements for the roles, the bank said, adding that it is taking necessary steps to ensure operational stability.
The bank is “well-capitalized” with a capital adequacy ratio of over 19.85%, “which reflects the soundness of the bank’s financial position”, it said in a statement on Monday.
(Reporting by Hritam Mukherjee in Bengaluru; Editing by Sumana Nandy and Mrigank Dhaniwala)
