By Aj Vinayak
To ensure leadership continuity after the resignation of both Managing Director (MD) and Executive Director (ED) of Karnataka Bank, the chairman of the bank has said the board has already recommended the appointment of an interim MD to Reserve Bank of India (RBI).
Speaking to businessline, P Pradeep Kumar, Chairman of the bank, said, 鈥淲e have recommended to RBI an interim MD. We expect an approval in the next 10-12 days.鈥 The bank will have somebody in place before the last working day of the current MD, Srikrishnan Hari Hara Sarma, on July 15.
To ensure continuity in operations, the bank has appointed Raghavendra Bhat as Chief Operating Officer (COO). He reported to duty on Wednesday, Pradeep Kumar said, adding, Bhat is a senior banker and retired as Chief General Manager of the bank. 鈥淪imultaneously we have formed a search committee who will be on the job of searching for permanent MD and ED,鈥 he said.
Asked about likely completion of the process by search committee, he said: 鈥淚t will take at least two months for the search committee, and then we have to get RBI approval. It may take four to five months.鈥
To a query on board鈥檚 criteria for selecting the new MD and ED, Pradeep Kumar said: 鈥淲hat we are looking at first is a right cultural fit for the bank, and somebody who can lead the bank into the next generation of banking.鈥
Stating that banking has become extremely competitive, he said: 鈥淲e have to be very nimble, especially in investment in technology with the things like AI coming into play.鈥 The bank is looking at a person who can lead it to the future.
Asked if the bank would look for internal candidates or look at external candidates, he said: 鈥淲e are looking at everybody. If there is a good candidate within the bank, he or she will be given the chance also.鈥
It is to be noted here that the 100-year-old Karnataka Bank has always preferred internal candidates for the post of MD and CEO. Srikrishnan Hari Hara Sarma was the first person to be appointed as MD and CEO from outside the bank.
Asked if this decision to appoint an external candidate as MD was premature for Karnataka Bank, he said: 鈥淚 don鈥檛 think so. He has set in place a lot of new things. The bank has to carry them forward.鈥
鈥楤ank is in strong position鈥
Soothing the sentiments of all the stakeholders, he said the bank is in very strong position. Karnataka Bank鈥檚 capital adequacy ratio (CAR) is 19.85 per cent as against the statutory requirement for 11.5 per cent. The bank鈥檚 board had fixed CAR requirement target at 13 per cent.
鈥淲e are one-and-half times almost more than what even the board has fixed. The bank has enough growth capital for at least three to four years. The bank鈥檚 profits have been growing and it鈥檚 very stable.鈥
Stating that foundationally the bank is strong, he said there is no need for either the investors or the depositors to worry. The bank has enough liquidity and enough capital for growth.
On his immediate focus as chairman in stabilising the bank internally with staff and externally with customers, he said he had dialogues with senior people on Sunday night itself on the day of the resignation. 鈥淎s soon as we told the stock exchange, we had a talk with all the DGMs and GMs. The next day I talked to all the staff along with the MD and ED,鈥 he said. He has also been instilling confidence among customers through various modes.
To a query on the top priorities of the bank for the next 6-12 months, he said: 鈥淲e have to get the new leadership in place. That is the number one priority. In the interim, bank鈥檚 growth should not be affected. That is why we have brought in a man with tremendous experience in the bank as COO to steer the ship.鈥
Thanking the team which was there for the last two and half years, he said they have stabilised the bank, and they have brought in fresh capital. Mentioning that a lot of initiatives are in place, he said the board will ensure that they continue and the bank will grow to the expectation of the investors and to the satisfaction of the customers.
More Like This
Published on July 2, 2025