ScoreWhy is Karnataka Bank Ltd ?
1
Strong lending practices with low Gross NPA ratio of 3.33%
2
Strong Long Term Fundamental Strength with a 19.74% CAGR growth in Net Profits
3
Healthy long term growth as Net profit has grown by an annual rate of 19.74%
4
Flat results in Sep 25
- NII(Q) Lowest at Rs 728.12 cr
- CASH AND CASH EQUIVALENTS(HY) Lowest at Rs 5,001.72 cr
- CREDIT DEPOSIT RATIO(HY) Lowest at 70.18%
5
With ROA of 1, it has a Attractive valuation with a 0.6 Price to Book Value
- The stock is trading at a fair value compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -2.26%, its profits have fallen by -14.5%
6
High Institutional Holdings at 30.71%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Karnataka Bank should be less than 10%
- Overall Portfolio exposure to Private Sector Bank should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Private Sector Bank)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Karnataka Bank for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Karnataka Bank
-2.33%
-0.08
28.27%
Sensex
4.75%
0.40
11.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Net Interest Income Growth (5y)
3.78%
Net Profit Growth (5y)
19.74%
Advance to Deposit
72.28%
Capital Adequacy Ratio (Tier 1)
14.53%
Gross NPA (latest)
3.33%
Gross NPA (avg)
3.57%
Coverage Ratio (avg)
53.03%
Cost to Income (avg)
53.70%
Net Interest Margin (avg)
3.32%
Operating Profit to Assets (avg)
4.27%
ROA (avg)
0.95%
Net Debt to Equity (avg)
0
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
7
Price to Book Value
0.64
PEG Ratio
NA
Dividend Yield
2.35%
ROE (Latest)
9.11%
ROA (Latest)
0.97%
Net NPA to Book Value
7.75
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Bullish
Bearish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend3What is working for the Company
PBT LESS OI(Q)
At Rs 76.60 cr has Grown at 135.9% (vs previous 4Q average
-7What is not working for the Company
NII(Q)
Lowest at Rs 728.12 cr
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 5,001.72 cr
CREDIT DEPOSIT RATIO(HY)
Lowest at 70.18%
INTEREST EARNED(Q)
Lowest at Rs 2,179.18 cr
NON-OPERATING INCOME(Q)
is 81.76 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for Karnataka Bank
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 76.60 cr has Grown at 135.9% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 32.47 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
CAR - Quarterly
Highest at 20.84%
in the last five quartersMOJO Watch
The Bank's capital base vs its risk assets is improving. However, the bank may not be taking adequate risk in its lending book.
CAR (%)
Here's what is not working for Karnataka Bank
Net Interest Income (Quarterly)
Lowest at Rs 728.12 cr and Fallen
each quarter in the last five quartersMOJO Watch
The bank's income from core business is falling
Net Interest Income (Rs Cr)
Interest Earned - Quarterly
Lowest at Rs 2,179.18 cr
in the last five quartersMOJO Watch
Near term sales trend is negative
Interest Earned (Rs Cr)
Non Operating Income - Quarterly
is 81.76 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
Cash and Cash Equivalents - Half Yearly
Lowest at Rs 5,001.72 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Credit Deposit Ratio - Half Yearly
Lowest at 70.18%
in the last four periodsMOJO Watch
Bank has been creating proportionately lower loans against its deposits, thereby creating fewer revenue generating assets
Credit Deposit Ratio (%)
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