CH Venkatachalam, the General Secretary of the All India Bank Employees Association (AIBEA), said that the recent resignations of the Managing Director (MD) and Executive Director (ED) of Karnataka Bank are not connected to any financial problems. He said the bank is safe and financially strong and are not linked to any financial concerns. There is no scam or issue within the bank that would affect customers or depositors.
He said that Karnataka Bank is a 100-year-old bank based in Mangaluru and is known for good service. He also spoke about the financial health of the bank.
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He pointed out that the bank’s total business worth over ₹1.82 lakh crores.
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Loans and advances of around ₹76,000 crores, with only ₹1,000 crores as NPA (bad loans) which is very low.
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A strong Capital Adequacy Ratio of 20%, which shows the bank’s good financial strength.
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A net profit of ₹1,272 crores as of March 2025.
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Around 950 branches and 9,000 well-trained staff members.
Venkatachalam also criticized central government banking policies, stating many recent reforms aren’t beneficial to the majority. Speaking at an AIBEA‑Karnataka Bank staff conference, he said that the banks should focus on serving customers well and treating everyone fairly. He assured everyone that the bank is trustworthy. He urged customers, staff, and the public not to panic and to ignore false rumors and continue to have confidence in the bank.
Venkatachalam also criticized some media reports that are causing unnecessary fear and confusion among people. He believes these reports are misleading and are damaging the bank’s reputation.
After Managing Director and CEO Srikrishnan Hari Hara Sarma and Executive Director Sekhar Rao resigned, the private bank created a special committee to find the right people for the top positions.
The board has approved Raghavendra Srinivas Bhat, an experienced senior banker, as the new Chief Operating Officer, effective July 2, 2025.