Karnataka Bank Share: Latest Price, News, and Leadership Changes in 2025
Karnataka Bank, one of India’s oldest private sector banks, is making headlines in 2025 for both its share price movements and significant leadership changes. If you’re tracking the Karnataka Bank share, want to know the latest news, or are curious about the recent resignations, this comprehensive article covers everything you need to know—share price trends, financials, what’s driving the news, and what investors should watch next.
Karnataka Bank: A Quick Overview
Founded in 1924 and headquartered in Mangaluru, Karnataka Bank Ltd. (NSE: KTKBANK, BSE: 532652) is a prominent private sector lender. It offers a wide range of financial services across retail, corporate, and digital banking, and is part of the NIFTY Total Market index. The bank has a strong legacy but is now facing a critical leadership transition.
Karnataka Bank Share Price: Recent Trends & Forecasts
As of June 30, 2025, Karnataka Bank’s share price closed at ₹196.58, marking a sharp drop of more than 5% from the previous closing price of ₹207.65. This decline follows a period of volatility and is closely linked to the latest news about the bank’s top management.
Key Share Price Data (June 30, 2025):
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Open: ₹199.50
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Day’s High / Low: ₹204.83 / ₹190.00
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Previous Close: ₹207.65
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Volume: 1.78 crore shares
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Market Cap: ₹7,396 crore
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52-Week High / Low: ₹245.00 / ₹162.20
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All-Time High: ₹286.55
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Book Value per Share: ₹305.43
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Dividend Yield: 2.81%
Analyst Forecasts
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Target Price: ₹281.33 (Upside of 35.48% from current levels)
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High Estimate: ₹325
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Low Estimate: ₹259
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2026 Forecast: Average target ₹240.33, range ₹202–₹260
Valuation Insights
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P/E Ratio: 5.81 (well below sector average of 20.81)
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P/B Ratio: 0.65
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Profit Growth: 24.1% CAGR over the last 5 years
Karnataka Bank News: Why Is the Share Price Falling?
The main reason for the sharp fall in Karnataka Bank’s share price is the resignation of two top executives: Managing Director & CEO Mr. Srikrishnan Hari Hara Sarma and Executive Director Mr. Sekhar Rao. Both cited “personal reasons” for stepping down, but the double exit has triggered uncertainty in the market.
Key News Highlights
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Resignation Impact: The stock dropped 5.33% on June 30, 2025, immediately after the resignation announcement.
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Profit Decline: Q4 FY25 net profit fell 7.95% year-on-year to ₹252.62 crore, despite a 2.63% rise in operating income.
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Dividend Update: The bank recommended a modest dividend of ₹0.1875 per share for FY25, the first since 2015.
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Auditor’s Report: Some “Emphasis of Matter” concerns were raised but have been resolved, and the bank maintains it is financially sound and well-capitalized.
Market Reaction
The leadership vacuum and profit decline have led to underperformance versus the sector and broader market volatility. Investors are cautious, awaiting clarity on succession and future strategy.
Karnataka Bank Financials: A Snapshot
| Quarter / Year | Revenue (₹ Cr) | Net Income (₹ Cr) | Net Profit Margin | Total Assets (₹ Cr) |
|---|---|---|---|---|
| Q4 FY25 | 2,680 | 253 | 9.43% | 1,16,205 |
| FY24 | 2,620 | 274 | 10.47% | 99,161 |
| FY23 | 2,504 | 336 | 13.43% | 91,674 |
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EPS (TTM): ₹33.68
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Operating Cash Flow (FY24): ₹362 crore
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Net NPA: Stable, but watch for updates post-leadership change
Karnataka Bank Resignation: What’s Next?
The simultaneous resignation of the CEO and Executive Director is rare and significant for any bank. Karnataka Bank has set up a search committee, and a new Chief Operating Officer (COO) will take interim charge from July 2, 2025.
What Should Investors Watch?
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Leadership Appointments: The market will closely track who is chosen as the next CEO and ED.
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Strategic Continuity: Will the new leaders continue the digital and retail banking push?
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Financial Stability: The bank has reassured stakeholders of its capital adequacy and soundness.
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Dividend Policy: Investors will look for signs of regular dividend payouts in the future.
Should You Buy, Hold, or Sell Karnataka Bank Shares?
Pros:
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Attractive valuation (low P/E and P/B)
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Decent dividend yield for value investors
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Strong asset growth and stable financials
Cons:
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Leadership uncertainty may weigh on sentiment short-term
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Recent profit decline and market volatility
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Underperformance versus sector peers
Analyst View:
Most analysts see long-term upside, with target prices ranging from ₹240 to ₹325. However, near-term volatility is likely until the new leadership team is in place and strategic clarity returns.
Latest Karnataka Bank News & Updates
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Stock Price Today: Down 5.77% to ₹196.58 on June 30, 2025
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Leadership Change: CEO & ED resign; interim COO from July 2, 2025
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Dividend: ₹0.1875 per share for FY25
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Profit Alert: Q4 FY25 net profit down nearly 8% YoY
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Market Cap: ₹7,396 crore
Karnataka Bank Share: Key Takeaways for Investors
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Short-term pressure from leadership exits and profit decline
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Long-term value potential if new management delivers on strategy
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Watch for news on CEO/ED appointments and Q1 FY26 results
Conclusion
Karnataka Bank is at a crossroads in 2025. While its share price has dipped due to high-profile resignations and profit pressures, the bank remains fundamentally strong and attractively valued. Investors should monitor leadership developments and upcoming financial results closely. For those with a long-term view, Karnataka Bank shares could offer value—once stability returns at the top.
