BSE:532652

Stock Analysis Report

Executive Summary

The Karnataka Bank Limited provides business and personal banking products and services in India.


Snowflake Analysis

Adequate balance sheet and fair value.

Share Price & News

How has Karnataka Bank's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 532652 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.1%

532652

-0.3%

IN Banks

-0.08%

IN Market


1 Year Return

-33.4%

532652

8.1%

IN Banks

9.5%

IN Market

Return vs Industry: 532652 underperformed the Indian Banks industry which returned 8.1% over the past year.

Return vs Market: 532652 underperformed the Indian Market which returned 9.5% over the past year.


Shareholder returns

532652IndustryMarket
7 Day-2.1%-0.3%-0.08%
30 Day2.6%-0.7%0.01%
90 Day3.9%-2.6%3.2%
1 Year-30.9%-33.4%8.5%8.1%11.5%9.5%
3 Year-35.8%-41.2%12.8%11.6%23.6%16.7%
5 Year-17.6%-42.4%11.5%7.9%35.5%22.9%

Price Volatility Vs. Market

How volatile is Karnataka Bank's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Karnataka Bank undervalued compared to its fair value and its price relative to the market?

4.85x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 532652 (₹76.35) is trading above our estimate of fair value (₹38.18)

Significantly Below Fair Value: 532652 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 532652 is good value based on its PE Ratio (4.8x) compared to the Banks industry average (18.1x).

PE vs Market: 532652 is good value based on its PE Ratio (4.8x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 532652's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 532652 is good value based on its PB Ratio (0.4x) compared to the IN Banks industry average (0.6x).


Next Steps

Future Growth

How is Karnataka Bank forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

22.9%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Karnataka Bank has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Karnataka Bank performed over the past 5 years?

0.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 532652 has high quality earnings.

Growing Profit Margin: 532652's current net profit margins (20.9%) are lower than last year (23.6%).


Past Earnings Growth Analysis

Earnings Trend: 532652's earnings have grown by 0.7% per year over the past 5 years.

Accelerating Growth: 532652's earnings growth over the past year (9.3%) exceeds its 5-year average (0.7% per year).

Earnings vs Industry: 532652 earnings growth over the past year (9.3%) underperformed the Banks industry 25.5%.


Return on Equity

High ROE: 532652's Return on Equity (7.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Karnataka Bank's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 532652 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 532652's debt is covered by short term assets (assets are 1.6x debt).


Financial Institutions Analysis

Asset Level: 532652's level of assets compared to its equity is moderate.

Allowance for Bad Loans: Insufficient data to determine if 532652 has a sufficient allowance for bad loans.

Low Risk Liabilities: 532652's liabilities are made up of primarily low risk sources of funding.

Loan Level: 532652 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 532652's loans are broadly funded by customer deposits.

Level of Bad Loans: 532652 has a high level of bad loans (4.85%)


Next Steps

Dividend

What is Karnataka Bank's current dividend yield, its reliability and sustainability?

4.59%

Current Dividend Yield


Dividend Yield vs Market

company4.6%marketbottom25%0.6%markettop25%2.6%industryaverage0.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 532652's dividend (4.59%) is higher than the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: 532652's dividend (4.59%) is in the top 25% of dividend payers in the Indian market (2.58%)


Stability and Growth of Payments

Stable Dividend: 532652's dividend payments have been volatile in the past 10 years.

Growing Dividend: 532652's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (22.2%), 532652's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

M. Mahabaleshwara Bhat (60yo)

2.8yrs

Tenure

₹7,106,000

Compensation

Mr. Mahabaleshwara M. S. has over 32 years of banking experience both at operational and administrative levels. He holds M.Sc.(Agri) with specialization in Agronomy, from the University of Agricultural Sci ...


CEO Compensation Analysis

Compensation vs Market: M.'s total compensation ($USD98.92K) is below average for companies of similar size in the Indian market ($USD302.42K).

Compensation vs Earnings: M.'s compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
M. Mahabaleshwara Bhat
MD, CEO & Director2.8yrs₹7.11m0.0055% 1.2m
Y. Balachandra
Chief GM & COO0.8yrsno data0.0014% 312.5k
Prasanna Patil
Compliance Officer & Company Secretary2.8yrsno data0.000040% 8.6k
Muralidhar Rao
Chief Financial Officer0.8yrsno datano data
Venkatakrishna Bhat
Deputy GM & CTO0yrsno datano data
M. V. Bhat
Legal Adviser0yrsno datano data
Srinivas Deshpande
Assistant GM of Public Relations0yrsno datano data
Subhaschandra Puranik
General Manager0yrsno datano data
S. Ramesh
General Manager2.3yrsno datano data
B. Rao
General Manager0yrsno datano data

2.3yrs

Average Tenure

Experienced Management: 532652's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
M. Mahabaleshwara Bhat
MD, CEO & Director2.8yrs₹7.11m0.0055% 1.2m
Ullal Bhat
Independent Director4yrs₹2.69m0.0026% 551.7k
P. Bhat
Part Time Non-Executive Chairman of the Board2.8yrs₹3.97m0.0021% 456.8k
D. Kumar
Independent Director3.2yrs₹810.00k0.0063% 1.3m
Ashok Haranahalli
Independent Director7.4yrs₹1.52m0.0032% 685.3k
Rammohan Belle
Independent Director6.3yrs₹2.19m0.00013% 28.0k
Mythily Ramesh
Independent Director1.9yrs₹1.77m0.000050% 10.8k
Keshav Desai
Independent Director4yrs₹1.39m0.0035% 762.8k
B. Ashok
Additional Non-Executive Non-Independent Director0.5yrsno datano data

3.2yrs

Average Tenure

61yo

Average Age

Experienced Board: 532652's board of directors are considered experienced (3.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10.2%.


Top Shareholders

Company Information

The Karnataka Bank Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Karnataka Bank Limited
  • Ticker: 532652
  • Exchange: BSE
  • Founded: 1924
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: ₹21.549b
  • Shares outstanding: 282.61m
  • Website: https://www.karnatakabank.com

Number of Employees


Location

  • The Karnataka Bank Limited
  • Mahaveera Circle
  • Kankanady
  • Mangalore
  • Karnataka
  • 575002
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532652BSE (Mumbai Stock Exchange)YesEquity SharesININRMay 2000
KTKBANKNSEI (National Stock Exchange of India)YesEquity SharesININRMay 2000

Biography

The Karnataka Bank Limited provides business and personal banking products and services in India. It operates in four segments: Treasury, Corporate/Wholesale Banking, Retail Banking, and Other Banking Operations. The company savings and current accounts; fixed, cash certificate, and recurring deposits; and non-resident rupee, ordinary non-resident, foreign currency, and resident foreign currency accounts, as well as NRI priority banking services. It also provides loan products, including vehicle, home, education, personal, MSME, mortgage, women entrepreneur, gold, and other loans, as well as loans against property and fixed deposits. In addition, the company offers debit, credit, gift, deposit only, image, and travel cards; life, general, and health insurance products; investment products; remittance and other services; and forex services comprising pre and post-shipment, export collection bills, export LC advising, inward remittance facility, import letter of credit, import bill collection, buyer’s credit, and outward remittances. Further, it provides point of sale service for merchant's payment solutions; and KBL e-COLLECT, a fee payment processing platform, which enables the institution to offer parents and students a way to pay their fees through a range of payment options. Additionally, the company offers various loans for agriculture; and other services, such as Internet banking, mutual funds, demat and online trading services, locker facility, and funds transfer services. As of December 30, 2019, the company operated through a network of 848 branches. The Karnataka Bank Limited was founded in 1924 and is headquartered in Mangalore, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 12:35
End of Day Share Price2020/02/20 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.