STOCK DISCOVERY - 19-Oct-2021

KARNATAKA BANK (KTKBANK)

ABOUT THE COMPANY

Bangalore based Karnataka Bank is a leading lender in Private Bank category has all India presence and is poised to emerge as the 'Digital Bank of Future' with end-to-end digital solutions for all its banking activities.

The Bank CEO and MD Mr. M. S. Mahabaleshwara, while addressing the 97th annual general meeting at its Head Office, said powered by its IT-driven wholistic transformation 'KBL Vikaas,' the bank is now preparing for the second phase under 'KBL NxT' concept to have end-to-end digital solutions for all banking activities, according to a bank press release.

The bank will be celebrating its centenary year during 2023-24. So the MD and CEO has talked about a lot of IT-driven innovative and far-reaching initiatives to mark the celebration are already lined up to lay a strong foundation for the second century of the bank. All these innovative ideas is for providing better customer satisfaction and there by taking the Bank to a new height.

Interesting to know that the bank has declared a dividend of 18 per cent which is a very high in terms of percentage beneficial for investors.

In terms of Financials, the business turnover of the Bank has touched Rs 1,28,005.99 crore, with deposits of Rs 76,214.78 crore and advances of Rs 51,791.21 crore.. and the profit is also has been increased from around Rs. 31.36 cr. in Mar-2021 to Rs. 106.08 cr. in Jun-2021.

One area of concern is that the Gross NPAs declined to 4.82% as at 30-06-2021, compared to 4.91% in the sequential previous quarter i.e Q4 of FY 21. The Bank is putting extra effort to reduce the NPA figure at check.

As per the Bank, in spite of the hardships posed by the second wave of COVID 19 pandemic, Bank has been able to continue its satisfactory performance during the first quarter of the current year also. Significant improvement in asset quality as evidenced by the decline in GNPAs to 4.82 % from 4.91% and net NPAs to 3.00% from 3.18 % as at 31-Mar-2021, coupled with improved NII, NIM, PCR etc are testimony for the successful handling of the impact of the pandemic

TECHNICAL CHART ANALYSIS

As per the Weekly Chart, it looks lie the price is near the 115 week high. The chart if forming a Reverse Head and Shoulder Pattern which is a Bull Sign. If it crosses the Neck Line which is at around 71, then the price can test the new highs at 120 and 160 in one year time. The high volume being traded during the past few weeks shown strength in the pattern and the high delivery percentage during recent weeks also validates the expectation of a bull run.

source: Money Control

source: Trading View

In case you like this analysis, please subscribe it, so that you can get automatic alert when such analysis are updated in this space. Please also share with your peers which will encourage us to put such analysis in the coming days.

Please also read: Analysis on Hospitality and Textile Sector