ScoreWhy is Karnataka Bank Ltd ?
1
Strong lending practices with low Gross NPA ratio of 2.78%
2
The Bank has a high Capital Adequacy Ratio of 16.02% signifying high buffers against its risk based assets
3
Healthy long term growth as Net profit has grown by an annual rate of 22.12%
4
Positive results in Mar 26
- GROSS NPA(Q) Lowest at 2.78%
- NII(Q) Highest at Rs 842.95 cr
- CREDIT DEPOSIT RATIO(HY) Highest at 75.21%
5
With ROA of 1, it has a 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 30.99%, its profits have risen by 3% ; the PEG ratio of the company is 2.6
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
30.99%
0.96
32.13%
Sensex
-10.21%
-0.78
13.06%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Net Interest Income Growth (5y)
4.78%
Net Profit Growth (5y)
22.12%
Advance to Deposit
72.09%
Capital Adequacy Ratio (Tier 1)
16.02%
Gross NPA (latest)
2.78%
Gross NPA (avg)
3.41%
Coverage Ratio (avg)
54.81%
Cost to Income (avg)
53.83%
Net Interest Margin (avg)
3.35%
Operating Profit to Assets (avg)
4.19%
ROA (avg)
0.99%
Net Debt to Equity (avg)
0
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
8
Price to Book Value
0.76
PEG Ratio
2.62
Dividend Yield
1.88%
ROE (Latest)
9.91%
ROA (Latest)
1.01%
Net NPA to Book Value
6.07
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend19What is working for the Company
GROSS NPA(Q)
Lowest at 2.78%
NII(Q)
Highest at Rs 842.95 cr
CREDIT DEPOSIT RATIO(HY)
Highest at 75.21%
PBDIT(Q)
Highest at Rs 216.18 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 9.58%
PBT LESS OI(Q)
Highest at Rs 125.84 cr.
PAT(Q)
Highest at Rs 408.19 cr.
EPS(Q)
Highest at Rs 10.79
NET NPA(Q)
Lowest at 0.98%
-1What is not working for the Company
NON-OPERATING INCOME(Q)
is 76.02 % 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 125.84 cr has Grown at 1016.6% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 11.27 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 408.19 cr has Grown at 41.4% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 288.67 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Gross NPA - Quarterly
Lowest at 2.78%
in the last five quartersMOJO Watch
Proportion of stressed loans given by the bank are falling
Gross NPA (%)
Net Interest Income (Quarterly)
Highest at Rs 842.95 cr
in the last five quartersMOJO Watch
The bank's income from core business is increasing
Net Interest Income (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 216.18 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 9.58%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 125.84 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 408.19 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 10.79
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Net NPA - Quarterly
Lowest at 0.98%
in the last five quartersMOJO Watch
Proportion of stressed loans given by the bank are falling
Net NPA (%)
Credit Deposit Ratio - Half Yearly
Highest at 75.21%
in the last four periodsMOJO Watch
Bank has been creating proportionately higher loans against its deposits, thereby creating higher revenue generating assets
Credit Deposit Ratio (%)
Here's what is not working for Karnataka Bank
Non Operating Income - Quarterly
is 76.02 % 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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