Karnataka Bank shares drop 7% after top management resignations
Karnataka Bank shares: The bank's Board of Directors approved the departure of its MD & CEO.
Karnataka Bank's shares plunged over 7% following the resignations of MD & CEO Srikrishnan Hari Hara Sarma and Executive Director Sekhar Rao. The Board has formed a Search Committee for replacements and appointed a COO to ensure continuity. While technical indicators suggest short-term caution, the bank's valuation appears attractive for long-term investors.
Tired of too many ads?
Remove Ads
Technical Outlook & Valuation Snapshot: Karnataka Bank
Tired of too many ads?
Remove Ads
Shares of Karnataka Bank fell over 7% on Monday to Rs 192, following a major leadership shake-up. The decline came after the bank's Board of Directors accepted the resignations of its MD & CEO, Srikrishnan Hari Hara Sarma , and Executive Director, Sekhar Rao.Sarma, citing personal reasons and a planned move back to Mumbai, will step down effective July 15, 2025. Rao, citing personal commitments and his inability to relocate to Mangaluru, will exit by July 31, 2025.In response, the Board has formed a Search Committee to scout for suitable successors for both leadership roles. To ensure operational continuity, the bank has appointed a senior banker as Chief Operating Officer (COO), who will assume charge from July 2, 2025, pending regulatory approval.The twin resignations of key leadership figures in quick succession have raised concerns among investors, triggering a sharp sell-off in the stock. The focus now shifts to the bank's succession planning and interim management stability as the market awaits further clarity on new appointments. Karnataka Bank shares are trading at Rs 192, marking a 7.30% decline from the previous close of Rs 207.91, reflecting bearish sentiment in Monday's session.From a technical perspective, the stock is showing signs of negative momentum. It is currently trading below 7 out of 8 key Simple Moving Averages (SMAs) — including the 5-day to 200-day averages — except the 100-day SMA, where it remains marginally above. This trend suggests potential weakness in near-to-medium-term price action.The Relative Strength Index (RSI-14) stands at 59.7, indicating a neutral zone. An RSI below 30 typically signals an oversold condition, while a reading above 70 suggests overbought territory.On the valuation front, the stock appears undervalued. Karnataka Bank is currently trading at a Price-to-Earnings (PE) ratio of 5.73, compared to its 5-year average PE of 6.3. The forward PE, based on analyst estimates, is projected at 6.0, indicating potential upside if earnings meet expectations.Overall, while technical indicators suggest caution in the short term, valuations remain attractive for longer-term investors tracking earnings stability and potential leadership transitions.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
an hour ago
- Mint
Best stock recommendations today: MarketSmith India's top picks for 1 July
Stock market today: The Indian stock market closed the final trading session of June in the red, as investors booked profits after a strong four-day rally. Still, it marked the fourth straight month of gains, with the Nifty 50 rising 3.10% and the Sensex up 2.65% in June—taking their cumulative four-month gains to over 15%. Notably, both indices have rebounded nearly 17.3% from their April lows, marking their strongest recovery in recent memory. Two stocks recommended by MarketSmith India for 1 July: Nifty 50: Performance on 30 June The Nifty 50 opened flat on Monday and faced profit booking at higher levels, trading with a negative bias and closing near the day's low. This price action resulted in a bearish candle on the daily chart. Despite the weakness, the index managed to hold above the 25,500 mark. Sectoral performance was mixed—PSU Banks, Pharma, and IT closed in the green, while Private Banks, Realty, Auto, FMCG, and Metals ended in the red. Broader market indices outperformed, supporting positive market breadth, with the advance-decline ratio at 3:2. Technically, the Nifty continues to trend above all key moving averages across timeframes, affirming its strong bullish structure. The recent breakouts on both daily and weekly charts strengthen the positive outlook. Momentum indicators support this view: the RSI is trending upwards around 63–64, and the daily MACD has confirmed a positive crossover, signalling continued near-term strength. According to O'Neil's methodology of market direction, the Nifty reclaimed its recent high of 25,116, upgrading the market status to a Confirmed Uptrend as of 11 June 2024. While profit booking was seen on Monday, broader sentiment remains positive. However, near-term upside may be limited this week. If momentum holds, the index could move toward 25,700–25,800, with potential to test 26,000. On the downside, immediate support lies at 25,500, with stronger support at 25,200. Nifty Bank: Performance Overview The Nifty Bank index declined 0.23% on Monday after a volatile session. Despite hitting a fresh intraday all-time high, the index reversed and closed lower due to profit booking, primarily in heavyweight private banks. PSU banks, however, posted gains. The broader FINNIFTY index underperformed, closing down 0.62%. Technically, Nifty Bank continues to hold above all key moving averages across timeframes, reaffirming the strength of its bullish trend. It formed a small bearish candle on the daily chart but maintained a 'higher-high, higher-low' structure, suggesting underlying resilience. Momentum indicators remain supportive: the daily RSI is around 65 in bullish territory, and the MACD has posted a positive crossover. The weekly chart also maintains a bullish setup, with both RSI and MACD pointing upward, supporting a strong medium-term outlook. Per O'Neil's model, Nifty Bank has recently transitioned from an Uptrend Under Pressure to a Confirmed Uptrend phase. Despite the recent pullback, sentiment remains positive. A sustained hold above 57,000 could push the index toward 58,500–59,000. On the downside, immediate support is seen at 56,500, with a stronger support zone near 56,000. MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, developed by legendary investor William J. O'Neil. You can access a 10-day free trial by registering on its website. Trade name: William O'Neil India Pvt. Ltd. Sebi Registration No.: INH000015543 Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
New Indian Express
7 hours ago
- New Indian Express
Karnataka Bank is free from any financial scam: AIBEA general secretary
MANGALURU: CH Venkatachalam, General Secretary, All India Bank Employees Association, maintained that the resignation of Managing Director and Executive Director of Karnataka Bank has nothing to do with the financial condition of the Bank. He added that the Bank is quite safe and absolutely free from any financial scam affecting the interest of the customers and Depositors. In a statement, Venkatachalam said that in the wake of resignation MD and ED of the Bank, information is being spread in a section of the media, creating unwarranted confusion and panic in the minds of the bank's customers and the general public about the Bank. 'These are deliberate attempts to denigrate the Bank with ulterior motives," he said. Stating that Karnataka Bank is a 100 year old Bank with headquarters in Mangaluru, he said over the years it has grown as a very efficient and customer-friendly Bank. 'Today it has a total business of more than Rs. 1,82,000 crores. Out of the total loans and advances of the Bank of Rs. 76,000 crores, the net non-performing loans are only Rs. 1000 crores. Capital Adequacy Ratio of the Bank is nearly 20% which indicates the soundness of the Bank. The Bank has been in profit all these years and as on March 2025, the net profit of the Bank was Rs. 1272 crores. The Bank has about 950 Branches all over the country with a well-trained staff strength of nearly 9000 employees and officers,' Venkatachalam said in a release. In all financial parameters, he further said the Bank has been doing well and there is no reason for any worry or panic about the financial stability of the Bank. 'The information being spread by a section of the media is malicious. We appeal to all the staff members of the Bank as well as to the Depositors and customers to ignore this false propaganda about the Bank's health,' the release added.
Time of India
8 hours ago
- Time of India
Trump demands 1% interest rates, blasts Fed chair Jerome 'Too Late' Powell for ‘costing trillions'
U.S. President Donald Trump launched a sharp attack on Federal Reserve Chairman Jerome Powell and the Fed Board in a Truth Social post on Monday, accusing them of failing in their duties and causing the country to lose "trillions of dollars in interest cost." Trump claimed that if the Fed were 'doing their job properly,' the country would be saving trillions in interest costs, suggesting that interest rates should be as low as 1% or better. 'The Board just sits there and watches, so they are equally to blame,' Trump added, in a post that underscores his long-standing frustration with Powell, whom he appointed in 2018. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Knee pain prices might surprise you Knee pain | search ads Find Now Undo Trump referred to Powell as 'Jerome 'Too Late' Powell', criticizing the central bank for what he called inaction and mismanagement of interest rates. 'Jerome 'Too Late' Powell, and his entire Board, should be ashamed of themselves for allowing this to happen to the United States,' Trump wrote. 'They have one of the easiest, yet most prestigious, jobs in America, and they have FAILED — And continue to do so.' Live Events Trump's comments come amid ongoing discussions within the Federal Reserve about when and how quickly to cut interest rates amid signs of cooling inflation and global economic uncertainty .
