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The Karnataka Bank Ltd Stock Analysis

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

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
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'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Net Interest Income (Rs. Cr.)6127329041,0561,1691,3031,4911,8581,9052,030
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 Income2,6633,4474,1624,6945,2055,5355,9956,3786,9087,871
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
8.059.6813.6912.2217.7416.3214.5510.4715.3513.89
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
95.37102112.17119.82133.05144.9151.8160.64172.84176.93
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 (%)
  • >1.25 : Very Good
  • 1-1.25 : Somewhat Good
  • <1 : Not Good
Net Profit/Total Funds (%)0.70.720.890.70.910.770.750.480.640.53
To view Net NPA to Net Advances (%) Colour Rating Guide click here
Net NPA to Net Advances (%): Colour Rating Guide
  • < 0.5 : Very Good
  • 0.5-1 : Somewhat Good
  • >1: Not Good
Net NPA to Net Advances (%)1.622.111.511.911.982.352.642.962.953.08
To view Capital Adequacy Ratio Colour Rating Guide click here
Capital Adequacy Ratio: Colour Rating Guide
  • > 12% : Very Good
  • 9%-12% : Somewhat Good
  • <9%: Not Good
Capital Adequacy Ratio - - - - - - - - - 0%
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 Income14.2%11.7%10.9%6.6%
Total Income12.8%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 \ YEARSMar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Interest Earned / Total Income89.0489.9690.4589.2390.2690.1986.585.0485.582.26
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 (%)1.992.072.232.32.422.452.472.82.552.62
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 (%)9.639.8112.7810.5414.0311.7410.766.79.217.94
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 (%) 24.8824.5624.9125.424.9426.2729.0427.9828.0628.91
Entity Percentage Holding
Institutions 13.97%
Non-Institutions 86.03%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

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.

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.

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.

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

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 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 bank’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
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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