What is CAGR? What does CAGR table indicate for The Karnataka Bank Ltd?

Compounded average growth rate (CAGR) measures the average annual growth rate compounded year-on-year over a period of time.

The Karnataka Bank Ltd Stock Analysis

Q: Is The Karnataka Bank Ltd a good quality company?

MoneyWorks4Me analysed the past 10-year performance of The Karnataka Bank Ltd and arrived at the following conclusion.

Q: Is the current market price of The Karnataka Bank Ltd a good price to buy it?

The 5-year analysis of The Karnataka Bank Ltd's performance infers.

Q: What is The Karnataka Bank Ltd share price return in the past 10 years?

We analysed the performance of The Karnataka Bank Ltd share prices over the last 10 years. Here is what we found out:

Small Cap

Evaluated by 3077 users | BSE: 532652 | NSE: KTKBANK |
Bank - Private

10 Year X-Ray

Standalone basis Standalone basis P Consolidated basis

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

What is a Financial Track Record? How to read this chart in order to understand the data present here?

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.

The Karnataka Bank Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

	Mar'11	Mar'12	Mar'13	Mar'14	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20
Net Interest Income (Rs. Cr.)	612	732	904	1,056	1,169	1,303	1,491	1,858	1,905	2,030
Y-o-Y Gr. Rt.33	-	19.5%	23.4%	16.9%	10.7%	11.5%	14.4%	24.6%	2.6%	6.6%
Total Income	2,663	3,447	4,162	4,694	5,205	5,535	5,995	6,378	6,908	7,871
Y-o-Y Gr. Rt.	-	29.5%	20.7%	12.8%	10.9%	6.3%	8.3%	6.4%	8.3%	13.9%
Adjusted EPS (Rs.) Adjusted Earning per Share is the company’s net profit per share after adjusting for extra-ordinary/exceptional items	8.05	9.68	13.69	12.22	17.74	16.32	14.55	10.47	15.35	13.89
Y-o-Y Gr. Rt.	-	20.3%	41.4%	-10.7%	45.2%	-8%	-10.9%	-28%	46.6%	-9.5%
Book Value per Share (Rs.) The total value that a company will fetch upon liquidation (if it is closed down), after settling all obligations is called its Book Value. Book value of a company includes only tangible assets. Book value allocated to each outstanding share is called Book Value per share	95.37	102	112.17	119.82	133.05	144.9	151.8	160.64	172.84	176.93
Y-o-Y Gr. Rt.	-	7%	10%	6.8%	11%	8.9%	4.8%	5.8%	7.6%	2.4%

To view Net Profit/Total Funds (%) Colour Rating Guide click here

Net Profit/Total Funds (%)

0.7

0.72

0.89

0.7

0.91

0.77

0.75

0.48

0.64

0.53

To view Net NPA to Net Advances (%) Colour Rating Guide click here

Net NPA to Net Advances (%)

1.62

2.11

1.51

1.91

1.98

2.35

2.64

2.96

2.95

3.08

To view Capital Adequacy Ratio Colour Rating Guide click here

Capital Adequacy Ratio

Difference between Standalone Basis and Consolidated basis? Which method is preferred for The Karnataka Bank Ltd. ?

Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.

The Karnataka Bank Ltd. should be analysed on a Standalone basis

CAGR CAGR Colour Code Guide

	9 yrs	5 yrs	3 yrs	1 yr
Net Interest Income	14.2%	11.7%	10.9%	6.6%
Total Income	12.8%	8.6%	9.5%	13.9%
Adjusted EPS Adjusted Earnings per Share is the Company’s net profit per share after adjusting for extra-ordinary/exceptional items.	6.3%	-4.8%	-1.5%	-9.5%
Book Value per Share	7.1%	5.9%	5.2%	2.4%
Share Price	-1.6%	-11%	-28%	-24.4%

Key Financial Ratios

RATIOS \ YEARS	Mar'11	Mar'12	Mar'13	Mar'14	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20
Interest Earned / Total Income	89.04	89.96	90.45	89.23	90.26	90.19	86.5	85.04	85.5	82.26
Margins	To view Margins Colour Rating Guide click here										Margins: Colour Rating Guide >2.75 : Very Good 1.75-2.75 : Somewhat Good <1.75 : Not Good
NIM (%)	1.99	2.07	2.23	2.3	2.42	2.45	2.47	2.8	2.55	2.62
Performance Ratios	To view Performance Ratios Colour Rating Guide click here										Performance Ratios: Colour Rating Guide >15% : Very Good 12%-15% : Somewhat Good <12% : Not Good
Return on Equity (%)	9.63	9.81	12.78	10.54	14.03	11.74	10.76	6.7	9.21	7.94
Liquidity Ratio To view Liquidity Ratio Colour Rating Guide click here Liquidity Ratio: Colour Rating Guide >35 : Very Good 25-35 : Somewhat Good <25 : Not Good
CASA (%)	24.88	24.56	24.91	25.4	24.94	26.27	29.04	27.98	28.06	28.91

Management X-Ray

Shareholding Pattern

Entity	Percentage Holding
Institutions	13.97%
Non-Institutions	86.03%

Promoter's Holding & Share Pledging

Pledged ^*

0.00

* Pledged shares as % of Promoter's holding (%)

FAQs

1. Is The Karnataka Bank Ltd a good quality company?

MoneyWorks4Me analysed the past 10-year performance of The Karnataka Bank Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that The Karnataka Bank Ltd is a average quality company. However, for specific investment actions please connect with your investment advisor.

2. Is current market price of The Karnataka Bank Ltd a good price to buy it?

The 5-year analysis of The Karnataka Bank Ltd's performance infers:

The Karnataka Bank Ltd earnings have declined by -4.8%, whereas share price has depreciated -11% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

3. What is The Karnataka Bank Ltd share price return in the past 10 years ?

We analysed the performance of The Karnataka Bank Ltd share prices over the last 10 years. Here is what we found out:

The Karnataka Bank Ltd share price has depreciated -8% annually over the past ten years.

About Company

Karnataka Bank Limited, a leading 'A' Class Scheduled Commercial Bank in India, was incorporated on February 18th, 1924 at Mangalore, a coastal town of Dakshina Kannada district in Karnataka State. The bank took shape in the aftermath of patriotic zeal that engulfed the nation during the freedom movement of 20th Century India. Over the years the Bank grew with the merger of Sringeri Sharada Bank Ltd., Chitradurga Bank Ltd. and Bank of Karnataka.

With over 88 years experience at the

With over 88 years experience at the forefront of providing professional banking services and quality customer service, we now have a national presence with a network of 601 branches spread across 20 states and 2 Union Territories.

It has grown itself with merger of Sringeri Sharada Bank., Chitradurga Bank and Bank of Karnataka.

Karnataka Bank entered into Memorandum of Understanding with Investment Information Credit Rating Agency ICRA (ICRA). ICRA will assign rating to bankâ€™s loan and its other exposure under the standardized approach of RBI's New Capital Adequacy Framework for Basel-II.

Businesses

Personal Banking- Under this Karnataka Bank offers wide range of products and services such as saving accounts, deposit scheme, home loans, education loans, debit card, mobile banking, internet banking and many more.

Corporate Banking- It offers spectrum of services to its corporates client such as working capital finance, term loans, Infrastructure finance and other services.

For its insurance services it has a tie up with Metlife India Insurance Company and Bajaj Allianz General Insurance Company.

It also provides RTGS and Money Transfer Facility to its NRI clients through Western Union Money Transfer.

Awards

2009 - Karnataka Bank has joined hands with HMT Ltd for financing purchase of tractors and the finance will be extended under bank's 'KBL - HMT Sarathi' scheme.
2010 - Karnataka Bank Ltd has received a special award for use of 'IT (information technology) for internal effectiveness' for 2009.
2011 - Karnataka Bank offers Online Trading Services in alliance with Way2Wealth Brokers Pvt. Ltd.
2012 - Karnataka Bank receives National Award for being the best banker among middle-sized banks in customer friendliness.
Karnataka Bank receives I.B.A. Banking Technology Awards 2011.
Karnataka Bank Bags Two I.B.A. Awards.
Karnataka Bank launches Current & Savings Accounts campaign.
Karnataka Bank introduces revised Kisan Credit Card scheme for farmers.
Karnataka Bank bags IBA Banking Technology Award 2012-13
2013 - Best Bankers Awards Social Banking Excellence Award 20132nd Runner-up under Best Financial Inclusion Initiative2nd Runner-up under Best Risk Management and Facility InitiativeBFSI [Banking Financial Services & Insurance] Best Bank Award

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