Why is Karnataka Bank falling/rising?

As of 22-Aug, Karnataka Bank Ltd's stock price is currently at 172.05, reflecting an increase of 0.45 or 0.26%. The stock has shown a trend reversal by gaining after two consecutive days of decline and has outperformed its sector by 1.33% today. Despite this positive movement, the stock has underperformed in the longer term, with a year-to-date decline of 19.72% and a one-year return of -22.03%. The company has strong lending practices, a low Gross NPA ratio of 3.46%, and a healthy long-term growth rate in net profits at 20.80% CAGR. However, it has faced challenges with negative results in the last three consecutive quarters, which may be impacting investor sentiment.
In the broader market context, Karnataka Bank's short-term performance of +1.21% over the past week outpaces the Sensex's gain of +0.88%. However, the stock's longer-term performance remains concerning, as it has significantly underperformed the market over the past year. While the stock is trading at a fair value compared to its peers, the high institutional holdings at 32.66% indicate confidence from larger investors, despite the recent decline in net profits by 12.8%. The falling investor participation, as evidenced by a 17.18% drop in delivery volume, suggests a cautious outlook among retail investors, which could further influence the stock's price movements.