ScoreWhy is Karnataka Bank Ltd ?
1
Strong lending practices with low Gross NPA ratio of 2.58%
2
The Bank has a high Capital Adequacy Ratio of 16.20% signifying high buffers against its risk based assets
3
Healthy long term growth as Net profit has grown by an annual rate of 29.65%
4
With a growth in Interest of 5.55%, the company declared Very Positive results in Jun 26
- The company has declared positive results for the last 2 consecutive quarters
- GROSS NPA(Q) Lowest at 2.58%
- NET NPA(Q) Lowest at 0.87%
- NII(Q) Highest at Rs 938.29 cr
5
With ROA of 1.1, it has a Very Attractive valuation with a 0.8 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 62.17%, its profits have risen by 23.4% ; the PEG ratio of the company is 0.3
Real-Time Research ReportHow much should you buy?
- 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, High Return
Absolute
Risk Adjusted
Volatility
Karnataka Bank
62.26%
1.87
33.30%
Sensex
-2.43%
-0.18
13.58%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Net Interest Income Growth (5y)
7.10%
Net Profit Growth (5y)
29.65%
Advance to Deposit
70.67%
Capital Adequacy Ratio (Tier 1)
16.20%
Gross NPA (latest)
2.58%
Gross NPA (avg)
3.46%
Coverage Ratio (avg)
57.94%
Cost to Income (avg)
54.18%
Net Interest Margin (avg)
3.33%
Operating Profit to Assets (avg)
4.21%
ROA (avg)
1.03%
Net Debt to Equity (avg)
0
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
8
Price to Book Value
0.83
PEG Ratio
0.33
Dividend Yield
1.73%
ROE (Latest)
10.87%
ROA (Latest)
1.11%
Net NPA to Book Value
5.57
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend21What is working for the Company
GROSS NPA(Q)
Lowest at 2.58%
NET NPA(Q)
Lowest at 0.87%
NII(Q)
Highest at Rs 938.29 cr
INTEREST EARNED(Q)
Highest at Rs 2,382.65 cr
PBDIT(Q)
Highest at Rs 224.92 cr.
PBT LESS OI(Q)
Highest at Rs 196.22 cr.
PAT(Q)
Highest at Rs 418.95 cr.
EPS(Q)
Highest at Rs 11.08
-1What is not working for the Company
NON-OPERATING INCOME(Q)
is 64.43 % 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 196.22 cr has Grown at 207.5% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 63.80 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Gross NPA - Quarterly
Lowest at 2.58% and Fallen
each quarter in the last five quartersMOJO Watch
Proportion of stressed loans given by the bank are falling
Gross NPA (%)
Net NPA - Quarterly
Lowest at 0.87% and Fallen
each quarter in the last five quartersMOJO Watch
Proportion of stressed loans given by the bank are falling
Net NPA (%)
Net Interest Income (Quarterly)
Highest at Rs 938.29 cr
in the last five quartersMOJO Watch
The bank's income from core business is increasing
Net Interest Income (Rs Cr)
Interest Earned - Quarterly
Highest at Rs 2,382.65 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Interest Earned (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 224.92 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 196.22 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 418.95 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 418.95 cr has Grown at 27.9% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 327.63 CrMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 11.08
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
CAR - Quarterly
Highest at 21.10%
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
Non Operating Income - Quarterly
is 64.43 % 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
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