Karnataka Bank is stable, customers need not worry: Chairman Pradeep Kumar

Mangaluru: Karnataka Bank Chairman and Director Pradeep Kumar has reassured that the bank is financially strong and there is no reason for customers to panic.

Speaking to Udayavani in the backdrop of recent leadership changes at the bank, he clarified that the change in the post of Managing Director and CEO is a routine process and will not affect the bank’s operations in any way.

Capital sufficient for next four years

He stressed that capital strength is a key factor for any bank, and Karnataka Bank currently has sufficient capital for the next four years.

“As per the Reserve Bank of India (RBI) guidelines, the minimum Capital Adequacy Ratio (CAR) must be 11.5%. Internally, we had aimed for 13%, but we have achieved 19.5%, which only a few banks in the country have,” he noted.

MD-CEO and ED change is normal

“There is no need for speculation. Change of MD and Executive Director (ED) is a natural part of institutional functioning. The MD had tenure until June 2026 but resigned due to transfer to Mumbai. This will not affect the bank’s functioning,” he explained.

What’s next?

The present MD’s term ends on July 15. Before that, a temporary MD will be appointed. The Board of Directors has already finalised a name and recommended it to the RBI. The appointment is expected within 10 days.

Meanwhile, a search committee is actively working to identify a suitable full-time MD and ED, but the process may take four to five months to complete, he said.

Share value dip is temporary

Addressing concerns over stock price fluctuations, he said, “The stock market dipped yesterday, but it has stabilised today. Investors continue to have confidence in the bank. Just yesterday, an institution came forward to place a Rs 400 crore deposit. No institution makes such a decision without proper scrutiny. This reflects the trust in Karnataka Bank.”

No irregularities

Responding to unverified reports, he said, “Some media outlets published baseless reports without contacting us. This may have caused confusion among the public. But let me assure our customers, no irregularities have occurred in the bank, and there is no harm done. Customers need not fear.”

Change is part of growth

“We are a traditional private sector bank, but to stay strong in today’s fast-changing world, change is essential. In recent years, we have made certain changes that are well-thought-out and aimed at sustainable growth.

Accepting modernisation is necessary. Out of our 9,000 employees, we have recruited 10–15 experts from outside wherever we noticed skill gaps. Strengthening technology is a key part of our vision,” he concluded.