NSEI:KTKBANK

Stock Analysis Report

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Executive Summary

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


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: KTKBANK has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.3%

KTKBANK

-2.4%

IN Banks

-1.6%

IN Market


1 Year Return

-40.7%

KTKBANK

-26.3%

IN Banks

-2.2%

IN Market

Return vs Industry: KTKBANK underperformed the Indian Banks industry which returned -26.3% over the past year.

Return vs Market: KTKBANK underperformed the Indian Market which returned -2.2% over the past year.


Shareholder returns

KTKBANKIndustryMarket
7 Day-5.3%-2.4%-1.6%
30 Day2.7%9.7%1.7%
90 Day1.8%7.9%6.2%
1 Year-40.7%-40.7%-26.3%-26.3%-0.4%-2.2%
3 Year-70.4%-72.2%-41.3%-41.9%-4.4%-9.0%
5 Year-47.4%-62.0%-11.7%-13.6%40.4%29.8%

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

Valuation

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

2.84x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: KTKBANK (₹42.6) is trading above our estimate of fair value (₹11.4)

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


Price To Earnings Ratio

PE vs Industry: KTKBANK is good value based on its PE Ratio (2.8x) compared to the IN Banks industry average (14.5x).

PE vs Market: KTKBANK is good value based on its PE Ratio (2.8x) compared to the Indian market (16.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: KTKBANK is good value based on its PB Ratio (0.2x) 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?

20.9%

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?

1.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KTKBANK has a high level of non-cash earnings.

Growing Profit Margin: KTKBANK's current net profit margins (19.4%) are lower than last year (21.8%).


Past Earnings Growth Analysis

Earnings Trend: KTKBANK's earnings have grown by 1.1% per year over the past 5 years.

Accelerating Growth: KTKBANK's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: KTKBANK had negative earnings growth (-3.5%) over the past year, making it difficult to compare to the Banks industry average (4.6%).


Return on Equity

High ROE: KTKBANK's Return on Equity (7.2%) is considered low.


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


Financial Institutions Analysis

Asset Level: KTKBANK's Assets to Equity ratio (12.9x) is moderate.

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

Low Risk Liabilities: 95% of KTKBANK's liabilities are made up of primarily low risk sources of funding.

Loan Level: KTKBANK has an appropriate level of Loans to Assets ratio (65%).

Low Risk Deposits: KTKBANK's Loans to Deposits ratio (74%) is appropriate.

Level of Bad Loans: KTKBANK has a high level of bad loans (4%).


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate KTKBANK's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate KTKBANK's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if KTKBANK's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if KTKBANK's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: KTKBANK is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of KTKBANK's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

M. Mahabaleshwara Bhat (61 yo)

3.42yrs

Tenure

₹9,200,000

Compensation

Mr. Mahabaleshwara M. S. has been Managing Director & Chief Executive Officer since April 15, 2017 and also serves as Director of Karnataka Bank Ltd. Prior to this, he was serving as Chief General Manager ...


CEO Compensation Analysis

Compensation vs Market: M.'s total compensation ($USD123.38K) is below average for companies of similar size in the Indian market ($USD306.05K).

Compensation vs Earnings: M.'s compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
M. Mahabaleshwara Bhat
MD, CEO & Director3.42yrs₹9.20m0.0055%
₹ 732.3k
Y. Balachandra
Chief Operating Officer1.42yrsno data0.0014%
₹ 192.0k
Gokuldas Pai
Chief Business Officer1.42yrsno datano data
Muralidhar Rao
CFO & GM1.42yrsno data0.00039%
₹ 51.6k
Venkatakrishna Bhat
Deputy GM & CTOno datano datano data
M. V. Bhat
Legal Adviserno datano datano data
Prasanna Patil
Compliance Officer & Company Secretary3.42yrsno data0.000040%
₹ 5.3k
Srinivas Deshpande
Assistant GM of Public Relationsno datano datano data
Pankaj Gupta
Chief Digital & Marketing Officer0.42yrno datano data
Subhaschandra Puranik
General Managerno datano datano data
S. Ramesh
Chief Risk Officer3yrsno datano data
B. Rao
General Managerno datano datano data

1.4yrs

Average Tenure

Experienced Management: KTKBANK's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
M. Mahabaleshwara Bhat
MD, CEO & Director3.42yrs₹9.20m0.0055%
₹ 732.3k
Ullal Bhat
Non-Executive & Independent Director4.58yrs₹3.10m0.0026%
₹ 339.0k
Polali Bhat
Part Time Non-Executive Chairman3.42yrs₹4.20m0.0021%
₹ 280.8k
D. Kumar
Non-Executive & Independent Director3.83yrs₹1.50m0.0063%
₹ 827.7k
Pradeep Panja
Additional Non-Executive Independent Director0.17yrno datano data
Rammohan Belle
Non-Executive & Independent Director7yrs₹3.00m0.00013%
₹ 17.2k
Mythily Ramesh
Non-Executive & Independent Director2.58yrs₹2.00m0.000050%
₹ 6.6k
Keshav Desai
Non-Executive & Independent Director4.58yrs₹2.00m0.0035%
₹ 468.8k
B. Ashok
Non-Executive Director1.17yrs₹1.50m0.00053%
₹ 70.2k
A. Chandrashekar
Additional Non-Executive Independent Director0.17yrno datano data

3.4yrs

Average Tenure

65.5yo

Average Age

Experienced Board: KTKBANK's board of directors are considered experienced (3.4 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 not been meaningfully diluted in the past year.


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: KTKBANK
  • Exchange: NSEI
  • Founded: 1924
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: ₹13.243b
  • Shares outstanding: 310.87m
  • Website: https://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 personal and business banking products and services in India. It operates through four segments: Treasury Operations, Corporate/Wholesale Banking, Retail Banking, and Ot ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/31 12:37
End of Day Share Price2020/10/30 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.