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Karnataka Bank

NSEI:KTKBANK
Snowflake Description

High growth potential with adequate balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
KTKBANK
NSEI
₹36B
Market Cap
  1. Home
  2. IN
  3. Banks
Company description

The Karnataka Bank Limited provides business and personal banking products and services in India. The last earnings update was 104 days ago. More info.


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KTKBANK Share Price and Events
7 Day Returns
-4.7%
NSEI:KTKBANK
-1.9%
IN Banks
-1%
IN Market
1 Year Returns
10.3%
NSEI:KTKBANK
14.1%
IN Banks
-1.6%
IN Market
KTKBANK Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Karnataka Bank (KTKBANK) -4.7% -1.3% 9.7% 10.3% 14.2% 5.3%
IN Banks -1.9% 2.9% 9% 14.1% 46.2% 52.2%
IN Market -1% 3% 6.2% -1.6% 39% 73%
1 Year Return vs Industry and Market
  • KTKBANK underperformed the Banks industry which returned 14.1% over the past year.
  • KTKBANK outperformed the Market in India which returned -1.6% over the past year.
Price Volatility
KTKBANK
Industry
5yr Volatility vs Market

KTKBANK Value

 Is Karnataka Bank undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Karnataka Bank to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Karnataka Bank.

NSEI:KTKBANK Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 4 analysts.
= Stable Book Value * Return on Equity
= ₹219.00 * 12%
₹26.22
Book Value of Equity per Share Weighted future Book Value estimates from 4 analysts. ₹219.00
Discount Rate (Cost of Equity) See below 15.5%
Perpetual Growth Rate 10-Year IN Government Bond Rate 7.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NSEI:KTKBANK
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.6%
Equity Risk Premium S&P Global 8.6%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.6
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.595 (1 + (1- 35%) (77.13%))
0.929
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.93
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (0.929 * 8.6%)
15.54%

Discounted Cash Flow Calculation for NSEI:KTKBANK using Excess Returns Model Model

The calculations below outline how an intrinsic value for Karnataka Bank is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NSEI:KTKBANK Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (12% – 15.54%) * ₹219.00)
₹-7.80
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= ₹-7.80 / (15.54% - 7.55%)
₹-97.72
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= ₹219.00 + ₹-97.72
₹121.28
NSEI:KTKBANK Discount to Share Price
Calculation Result
Value per share (INR) From above. ₹121.28
Current discount Discount to share price of ₹128.80
= -1 x (₹128.80 - ₹121.28) / ₹121.28
-6.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Karnataka Bank is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Karnataka Bank's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Karnataka Bank's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:KTKBANK PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in INR ₹15.86
NSEI:KTKBANK Share Price ** NSEI (2019-04-25) in INR ₹128.8
India Banks Industry PE Ratio Median Figure of 19 Publicly-Listed Banks Companies 22.2x
India Market PE Ratio Median Figure of 2,739 Publicly-Listed Companies 16.05x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Karnataka Bank.

NSEI:KTKBANK PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NSEI:KTKBANK Share Price ÷ EPS (both in INR)

= 128.8 ÷ 15.86

8.12x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Karnataka Bank is good value based on earnings compared to the IN Banks industry average.
  • Karnataka Bank is good value based on earnings compared to the India market.
Price based on expected Growth
Does Karnataka Bank's expected growth come at a high price?
Raw Data
NSEI:KTKBANK PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 8.12x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
29.3%per year
India Banks Industry PEG Ratio Median Figure of 18 Publicly-Listed Banks Companies 1.11x
India Market PEG Ratio Median Figure of 586 Publicly-Listed Companies 1.32x

*Line of best fit is calculated by linear regression .

NSEI:KTKBANK PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 8.12x ÷ 29.3%

0.28x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Karnataka Bank is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Karnataka Bank's assets?
Raw Data
NSEI:KTKBANK PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in INR ₹197.65
NSEI:KTKBANK Share Price * NSEI (2019-04-25) in INR ₹128.8
India Banks Industry PB Ratio Median Figure of 40 Publicly-Listed Banks Companies 0.63x
India Market PB Ratio Median Figure of 3,630 Publicly-Listed Companies 1.09x
NSEI:KTKBANK PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NSEI:KTKBANK Share Price ÷ Book Value per Share (both in INR)

= 128.8 ÷ 197.65

0.65x

* Primary Listing of Karnataka Bank.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Karnataka Bank is overvalued based on assets compared to the IN Banks industry average.
X
Value checks
We assess Karnataka Bank's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. Karnataka Bank has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

KTKBANK Future Performance

 How is Karnataka Bank expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
29.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Karnataka Bank expected to grow at an attractive rate?
  • Karnataka Bank's earnings growth is expected to exceed the low risk savings rate of 7.6%.
Growth vs Market Checks
  • Karnataka Bank's earnings growth is expected to exceed the India market average.
  • Karnataka Bank's revenue growth is expected to exceed the India market average.
Annual Growth Rates Comparison
Raw Data
NSEI:KTKBANK Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:KTKBANK Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 29.3%
NSEI:KTKBANK Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 22.3%
India Banks Industry Earnings Growth Rate Market Cap Weighted Average 37%
India Banks Industry Revenue Growth Rate Market Cap Weighted Average 21.2%
India Market Earnings Growth Rate Market Cap Weighted Average 18.3%
India Market Revenue Growth Rate Market Cap Weighted Average 11.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NSEI:KTKBANK Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:KTKBANK Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-03-31 40,582 8,776 3
2020-03-31 34,097 6,839 4
2019-03-31 29,409 5,247 4
NSEI:KTKBANK Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2018-12-31 18,056 4,265
2018-09-30 16,750 3,735
2018-06-30 16,614 3,550
2018-03-31 16,490 -50,968 3,256
2017-12-31 18,582 4,530
2017-09-30 18,180 4,341
2017-06-30 18,123 4,646
2017-03-31 17,721 -62,772 4,523
2016-12-31 16,859 4,207
2016-09-30 16,509 4,491
2016-06-30 15,971 -38,974 4,275
2016-03-31 15,192 -33,681 4,153

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Karnataka Bank's earnings are expected to grow significantly at over 20% yearly.
  • Karnataka Bank's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:KTKBANK Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Karnataka Bank Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:KTKBANK Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-03-31 28.70 30.30 27.70 3.00
2020-03-31 22.43 23.30 21.20 3.00
2019-03-31 18.60 19.10 18.30 3.00
NSEI:KTKBANK Past Financials Data
Date (Data in INR Millions) EPS *
2018-12-31 15.86
2018-09-30 13.21
2018-06-30 12.56
2018-03-31 11.52
2017-12-31 15.21
2017-09-30 15.48
2017-06-30 18.09
2017-03-31 19.38
2016-12-31 21.62
2016-09-30 23.83
2016-06-30 22.68
2016-03-31 22.04

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Karnataka Bank is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Karnataka Bank's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Karnataka Bank has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

KTKBANK Past Performance

  How has Karnataka Bank performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Karnataka Bank's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Karnataka Bank's year on year earnings growth rate has been positive over the past 5 years.
  • Karnataka Bank's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Karnataka Bank's 1-year earnings growth is negative, it can't be compared to the IN Banks industry average.
Earnings and Revenue History
Karnataka Bank's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Karnataka Bank Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:KTKBANK Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 18,056.13 4,265.08 8,768.70
2018-09-30 16,749.83 3,734.78 8,175.00
2018-06-30 16,613.73 3,549.98 8,308.20
2018-03-31 16,489.83 3,256.08 8,577.30
2017-12-31 18,581.73 4,529.81 8,076.82
2017-09-30 18,179.83 4,341.31 8,630.42
2017-06-30 18,123.03 4,645.71 9,124.12
2017-03-31 17,721.13 4,522.61 9,030.32
2016-12-31 16,858.92 4,206.81 8,536.88
2016-09-30 16,509.22 4,490.61 7,893.48
2016-06-30 15,971.12 4,274.91 7,516.98
2016-03-31 15,192.02 4,152.91 7,128.98
2015-12-31 15,094.67 4,429.20 6,010.41
2015-09-30 15,209.17 4,529.50 6,763.51
2015-06-30 14,306.57 4,391.60 7,418.81
2015-03-31 14,618.67 4,514.50 7,056.11
2014-12-31 13,798.85 3,982.44 8,099.61
2014-09-30 13,228.35 3,980.04 7,398.21
2014-06-30 12,520.65 3,384.94 7,221.11
2014-03-31 12,832.55 3,110.34 7,134.31
2013-12-31 12,540.18 2,972.12 6,170.39
2013-09-30 12,020.68 2,705.82 5,935.89
2013-06-30 12,532.18 3,588.22 5,637.89
2013-03-31 11,302.18 3,480.82 5,340.39
2012-12-31 10,670.06 3,638.50 4,843.14
2012-09-30 10,236.36 3,558.30 5,055.04
2012-06-30 9,407.36 2,797.20 5,003.14

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Karnataka Bank has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Karnataka Bank used its assets less efficiently than the IN Banks industry average last year based on Return on Assets.
  • Unable to establish if Karnataka Bank improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Karnataka Bank's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Karnataka Bank has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

KTKBANK Health

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

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Karnataka Bank's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Karnataka Bank Company Filings, last reported 3 months ago.

NSEI:KTKBANK Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 55,830.40 28,075.20 30,871.60
2018-09-30 55,830.40 28,075.20 30,871.60
2018-06-30 54,101.52 8,159.70 4,853.52
2018-03-31 54,101.52 8,159.70 4,853.52
2017-12-31 52,898.30 10,511.30 27,790.90
2017-09-30 52,898.30 10,511.30 27,790.90
2017-06-30 51,425.82 8,326.22 7,256.85
2017-03-31 51,425.82 8,326.22 7,256.85
2016-12-31 39,360.10 10,262.40 27,274.70
2016-09-30 39,360.10 10,262.40 27,274.70
2016-06-30 38,121.40 9,652.30 9,802.70
2016-03-31 36,905.84 10,514.80 9,157.14
2015-12-31 36,006.90 11,367.90 25,013.00
2015-09-30 36,006.90 11,367.90 25,013.00
2015-06-30 33,890.61 10,377.58 6,110.75
2015-03-31 33,890.61 10,377.58 6,110.75
2014-12-31 32,624.10 13,866.90 21,638.10
2014-09-30 32,624.10 13,866.90 21,638.10
2014-06-30 30,521.98 19,151.91 4,855.81
2014-03-31 30,521.98 19,151.91 4,855.81
2013-12-31 29,805.00 21,437.00 19,465.60
2013-09-30 29,805.00 21,437.00 19,465.60
2013-06-30 28,570.81 15,797.61 5,095.22
2013-03-31 28,570.81 15,797.61 5,095.22
2012-12-31 27,989.30 14,680.70 17,262.80
2012-09-30 27,989.30 14,680.70 17,262.80
2012-06-30 25,982.11 11,470.74 3,688.51
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Karnataka Bank has an acceptable proportion of non-loan assets held.
  • Karnataka Bank's liabilities are made up of primarily low risk sources of funding.
  • Loans at Karnataka Bank are broadly funded by customer deposits.
  • Karnataka Bank's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).
  • Unable to establish if Karnataka Bank has a sufficient allowance for bad loans without relevant financial data.
  • Karnataka Bank has a high level of bad loans (greater than 2%).
X
Financial health checks
We assess Karnataka Bank's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Karnataka Bank has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

KTKBANK Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.33%
Current annual income from Karnataka Bank dividends. Estimated to be 3.23% next year.
If you bought ₹2,000 of Karnataka Bank shares you are expected to receive ₹47 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Karnataka Bank's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.51%).
  • Karnataka Bank's dividend is above the markets top 25% of dividend payers in India (1.95%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NSEI:KTKBANK Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
India Banks Industry Average Dividend Yield Market Cap Weighted Average of 18 Stocks 0.5%
India Market Average Dividend Yield Market Cap Weighted Average of 1399 Stocks 1.4%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.5%
India Top 25% Dividend Yield 75th Percentile 1.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:KTKBANK Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2021-03-31 4.33 3.00
2020-03-31 4.00 3.00
2019-03-31 3.83 3.00
NSEI:KTKBANK Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2018-05-15 3.000 2.636
2017-06-21 4.000 2.787
2017-05-15 4.000 2.344
2016-05-20 5.000 3.767
2015-06-24 5.000 4.302
2015-05-22 5.000 3.708
2014-09-04 4.000 3.046
2013-06-10 4.000 3.726
2013-05-15 4.000 2.735
2012-08-30 3.500 2.578
2011-07-25 3.000 3.431
2010-05-17 4.000 2.806
2009-06-01 6.000 4.584
2009-05-25 6.000 4.343

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Karnataka Bank's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (5.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (6.4x coverage).
X
Income/ dividend checks
We assess Karnataka Bank's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Karnataka Bank afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Karnataka Bank has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

KTKBANK Management

 What is the CEO of Karnataka Bank's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
M. Mahabaleshwara Bhat
COMPENSATION ₹6,171,000
AGE 59
TENURE AS CEO 2 years
CEO Bio

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 Sciences (UAS), Bengaluru and is a Certified Associate of the Indian Institute of Bankers (CAIIB) and has also done Post Graduate Diploma in Business Management (PGDBM). He joined the Karnataka Bank Limited (“Bank”) as an Agricultural Field Officer in 1984. He serves as Managing Director & Chief Executive Officer since April 04, 2017 and also serves as Director of Karnataka Bank Ltd. During his tenure, he worked in various branches and also at Head office of the Bank before being elevated as the Head of the Delhi Region. He played a key role in launching KRISHI CARD scheme of the Bank and has been the member of the prestigious "Chairman's Club" for 5 times, for his outstanding performance as Branch Head. He played a key role in expanding the foot prints of the Bank in the Northern part of India by opening good number of branches. He also served as Regional Head of Mumbai Region before being elevated to the Post of General Manager in 2011. In the year 2013 he was promoted as Chief General Manager and was overall in-charge of the Departments of Credit, Planning & Development, IT & MIS, Treasury & Accounts and HR & IR. He was actively involved in Bank's BPR (Business Process Reengineering) initiative and lateron played a pivotal role in the Digital Banking initiatives of the Bank. He is also actively involved in the implementation of "KBL Vision 2020", a five year growth plan of the Bank. He also served as the Non-Executive Director on the Board of Universal Sompo General Insurance Co. Ltd.

CEO Compensation
  • Insufficient data for M. to compare compensation growth.
  • M.'s remuneration is lower than average for companies of similar size in India.
Management Team Tenure

Average tenure of the Karnataka Bank management team in years:

2
Average Tenure
  • The tenure for the Karnataka Bank management team is about average.
Management Team

M. Mahabaleshwara Bhat

TITLE
MD, CEO & Director
COMPENSATION
₹6M
AGE
59
TENURE
2 yrs

Y. Balachandra

TITLE
GM & CFO
TENURE
2 yrs

M. Bhat

TITLE
Chief Operating Officer
TENURE
0.9 yrs

Venkatakrishna Bhat

TITLE
Deputy GM & CTO

M. V. Bhat

TITLE
Legal Adviser

Srinivas Deshpande

TITLE
Assistant GM of Public Relations

S. Ramesh

TITLE
Chief Risk Officer
TENURE
1.5 yrs

Prasanna Patil

TITLE
Company Secretary
TENURE
2 yrs

Subhaschandra Puranik

TITLE
General Manager of Credit Monitoring Department
TENURE
8.1 yrs

B. Rao

TITLE
General Manager
TENURE
7.1 yrs
Board of Directors Tenure

Average tenure and age of the Karnataka Bank board of directors in years:

3.2
Average Tenure
65
Average Age
  • The tenure for the Karnataka Bank board of directors is about average.
Board of Directors

P. Bhat

TITLE
Part Time Non-Executive Chairman of the Board
COMPENSATION
₹11M
AGE
67
TENURE
2 yrs

M. Mahabaleshwara Bhat

TITLE
MD, CEO & Director
COMPENSATION
₹6M
AGE
59
TENURE
2 yrs

Ashok Haranahalli

TITLE
Independent Director
COMPENSATION
₹1M
AGE
60
TENURE
6.6 yrs

Rammohan Belle

TITLE
Independent Director
COMPENSATION
₹3M
AGE
66
TENURE
5.5 yrs

Banavar Ananthramaiah Prabhakar

TITLE
Independent Director
COMPENSATION
₹3M
AGE
65
TENURE
4.6 yrs

Ullal Bhat

TITLE
Independent Director
COMPENSATION
₹3M
AGE
67
TENURE
3.2 yrs

D. Kumar

TITLE
Independent Director
COMPENSATION
₹1M
AGE
66
TENURE
2.3 yrs

Keshav Desai

TITLE
Independent Director
COMPENSATION
₹2M
AGE
57
TENURE
3.2 yrs

Mythily Ramesh

TITLE
Non-Executive Non-Independent Director
COMPENSATION
₹70K
AGE
52
TENURE
1.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
X
Management checks
We assess Karnataka Bank's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Karnataka Bank has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

KTKBANK News

Simply Wall St News

Is Now The Time To Look At Buying The Karnataka Bank Limited (NSE:KTKBANK)?

The Karnataka Bank Limited (NSE:KTKBANK), operating in the financial services industry based in India,. … As a small cap stock, which tends to lack high analyst coverage, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value? … Let’s examine Karnataka Bank’s valuation and outlook in more detail to determine if there’s still a bargain opportunity

Simply Wall St -

Can These Factors Give You An Edge In The Karnataka Bank Limited (NSE:KTKBANK)?

The Karnataka Bank Limited’s (NSE:KTKBANK) profitability and risk are largely affected by the underlying economic growth for the region it operates in IN given it is a small-cap stock with a market capitalisation of ₹29b. … These reforms target bank level regulation and aims to improve the banking sector’s ability to absorb shocks arising from economic stress which could expose financial institutions to vulnerabilities. … Low levels of leverage coupled with sufficient liquidity may place Karnataka Bank in a safe position in the face of adverse headwinds.

Simply Wall St -

Should The Karnataka Bank Limited (NSE:KTKBANK) Be Part Of Your Dividend Portfolio?

Historically, The Karnataka Bank Limited (NSE:KTKBANK) has been paying a dividend to shareholders. … Let's take a look at Karnataka Bank in more detail. … See our latest analysis for Karnataka Bank

Simply Wall St -

Here's How P/E Ratios Can Help Us Understand The Karnataka Bank Limited (NSE:KTKBANK)

Based on the last twelve months, Karnataka Bank's P/E ratio is 7.27. … How Do You Calculate Karnataka Bank's P/E Ratio … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Before You Buy The Karnataka Bank Limited's (NSE:KTKBANK), Consider This

If you're interested in The Karnataka Bank Limited (NSE:KTKBANK), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Beta is a widely used metric to measure a stock's exposure to market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.

Simply Wall St -

With An ROE Of 6.02%, Has The Karnataka Bank Limited's (NSE:KTKBANK) Management Done Well?

and want to start learning about core concepts of fundamental analysis on practical examples from today's market. … But what is more interesting is whether KTKBANK can sustain or improve on this level of return. … Metrics such as financial leverage can impact the level of ROE which in turn can affect the sustainability of KTKBANK's returns

Simply Wall St -

What Makes The Karnataka Bank Limited (NSE:KTKBANK) A Hard Investment?

As a small-cap finance stock with a market capitalisation of ₹33.01b, the risk and profitability of The Karnataka Bank Limited (NSE:KTKBANK) are largely tied to the underlying economic growth of the region it operates in IN. … The Basel III reforms are aimed at banking regulations to improve financial institutions’ ability to absorb shocks caused by economic stress which could expose banks like Karnataka Bank to vulnerabilities. … High liquidity and low leverage could position Karnataka Bank favourably at the face of macro headwinds.

Simply Wall St -

What To Know Before Buying The Karnataka Bank Limited (NSE:KTKBANK) For Its Dividend

The Karnataka Bank Limited (NSE:KTKBANK) has returned to shareholders over the past 10 years, an average dividend yield of 3.00% annually. … Does Karnataka Bank tick all the boxes of a great dividend stock? … When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:

Simply Wall St -

High Growth NSEI Stocks

KTKBANK’s projected future profit growth is a robust 36.74%, with an equally impressive underlying growth from its revenues expected over the upcoming years. … 532842’s projected future profit growth is a robust 49.22%, with an equally impressive underlying growth from its revenues expected over the upcoming years. … BSE:532842 Future Profit Jun 5th 18 For more financially robust companies with high growth potential to enhance your portfolio, explore this interactive list of fast growing companies.

Simply Wall St -

Should You Buy The Karnataka Bank Limited (NSE:KTKBANK) For Its Dividend?

The Karnataka Bank Limited (NSEI:KTKBANK) has returned to shareholders over the past 10 years, an average dividend yield of 4.00% annually. … Check out our latest analysis for Karnataka Bank How I analyze a dividend stock If you are a dividend investor, you should always assess these five key metrics: Is their annual yield among the top 25% of dividend payers? … NSEI:KTKBANK Historical Dividend Yield May 10th 18 Does Karnataka Bank pass our checks?

Simply Wall St -

KTKBANK Company Info

Description

The Karnataka Bank Limited provides business and personal banking products and services in India. The company operates in four segments: Treasury, Corporate/Wholesale Banking, Retail Banking, and Other Banking Operations. It accepts savings and current accounts, cash certificates, fixed and cumulative deposits, non-resident rupee accounts, ordinary non-resident accounts, and foreign currency accounts; and offers loan products, such as vehicle, home, education, personal, MSME, mortgage, women entrepreneur, gold, and other loans, as well as loans against property and fixed deposits. The company also provides debit, credit, gift, deposit only, image, and travel cards; life, general, and health insurance products; investments services; and remittance and other services. In addition, it offers forex services, which include 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, the company 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 convenient way to pay their fees through a range of payment options. Additionally, it offers various loans for agriculture; and other services, such as Internet banking, mutual funds, demat services, locker facility, and funds transfer services. As of March 20, 2019, the company operated through a network of 839 branches. The Karnataka Bank Limited was founded in 1924 and is headquartered in Mangalore, India.

Details
Name: The Karnataka Bank Limited
KTKBANK
Exchange: NSEI
Founded: 1924
₹36,399,884,382
282,607,798
Website: http://www.karnatakabank.com
Address: The Karnataka Bank Limited
Mahaveera Circle,
Kankanady,
Mangalore,
Karnataka, 575002,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NSEI KTKBANK Equity Shares National Stock Exchange of India IN INR 10. May 2000
BSE 532652 Equity Shares Mumbai Stock Exchange IN INR 10. May 2000
Number of employees
Current staff
Staff numbers
8,184
Karnataka Bank employees.
Industry
Diversified Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/25 13:35
End of day share price update: 2019/04/25 00:00
Last estimates confirmation: 2019/04/08
Last earnings filing: 2019/01/11
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.