India's Karnataka Bank drops after top boss, board member resign
June 30 (Reuters) - Shares of Karnataka Bank (KBNK.NS), opens new tab 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 stock opened 4% lower and accelerated declines. It was last down 8%.
On Sunday, the bank said, opens new tab 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 of directors, also resigned due to personal reasons.
Sarma's resignation is effective from July 15, while that of Rao is effective from July 31, the bank said.
A committee has been set up to identify suitable replacements for the roles, the bank said, adding it is taking necessary steps to ensure operational stability.
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