Karnataka Bank Share Price

The bank released the reviewed financial results for the second quarter of the financial year spanning 2018-2019. From this, we can see that:

1. The interest earned by the bank in the second quarter of FY19 was Rs.1,452.61 crore. This was an increase of about Rs.45 crore from the interest earned in the previous quarter.
2. The interest earned by the bank consists of the following components—interest/discount on advances/bills, income on investments, and interest on balances with RBI and other interbank funds. Of these, the interest/discount on advances/bills showed maximum appreciation with the value for the second quarter of FY19 being Rs.1,152.36 crore. This was Rs.1,105.79 crore in the previous quarter.
3. The total income of the bank rose from Rs.1,616.44 crore in the previous quarter to Rs.1,653.81 crore in the second quarter.
4. The operating expenses of the bank rose by only about Rs.4 crore over the quarter and stood at Rs.312.58 crore in the second quarter of FY19.
5. The employee cost rose marginally from Rs.110.50 crore in the first quarter of FY19 to Rs.110.85 crore in the second quarter.
6. Net profit for the period declined from Rs.163.24 crore in the first quarter of FY19 to Rs.111.86 crore in the second quarter.
7. The percentage of gross NPA (non-performing assets/accounts) was 4.66% in the second quarter, down from 4.72% in the first quarter of the same year.

Q1 Results FY19

The bank released the reviewed financial results for the first quarter of the financial year spanning 2018-2019. From this, we can see that:

1. The interest earned by the bank reduced from Rs.1,443.04 crore in the fourth quarter of FY18 to Rs.1,407.64 crore in the first quarter of FY19.
2. The total income of the bank reduced from Rs.1,737.55 crore in the previous quarter to Rs.1,616.44 crore in the first quarter of FY19.
3. The interest expended by the bank increased from Rs.901.53 crore in the final quarter of FY18 to Rs.939.06 crore in the first quarter of FY19.
4. The employee cost incurred by the bank dropped sharply from Rs.141.82 crore in the previous quarter to Rs.110.50 crore in the first quarter of FY19.
5. The operating expenses of the bank reduced from Rs.360.69 crore in the final quarter of FY18 to Rs.308.50 crore in the first quarter of FY19.
6. The total expenditure of the bank, excluding provisions and contingencies, reduced from Rs.1,262.22 crore in the previous quarter to Rs.1,247.56 in Q1 of FY19.
7. Net profit for the period increased multifold with the net profit for Q4 FY18 being Rs.11 crore while it was Rs.163.24 crore in Q1 FY19. This was an almost fifteen-fold increase.
8. The percentage of gross NPA was brought down from 4.92% to 4.72% in the Q1 FY19.

Annual Report 2017-2018

From the audited financial results for the year ending 31 March 2018, we can see that:

1. The interest earned by the bank for the year ending March 2018 was Rs.5,423.75 crore. This was a very good increase from the interest earned by the bank in the previous year, which was Rs.5,185.40 crore.
2. The income on investments reduced from Rs.1,271.16 crore in FY17 to Rs.1,161.53 crore in FY18.
3. The total income of the bank increased by over Rs.380 crore over the course of the FY18. The total income of the bank in FY17 was Rs.5,994.74 crore. The increase over the course of FY18 caused the total income of the bank to rise to Rs.6,378.09 crore.
4. The interest expended by the bank reduced from Rs.3,694.78 crore in FY17 to Rs.3,566.10 crore in FY18.
5. Operating expenses incurred by the bank increased from Rs.1,304.16 crore in FY17 to Rs.1,338.83 crore.
6. The employee cost borne by the bank reduced by almost Rs.80 crore to Rs.524.79 crore.
7. The total expenditure of the bank over the course of the year reduced by about Rs.94 crore to Rs.4,904.92 crore.
8. Net profit for the year reduced to Rs.325.61 crore, down from Rs.452.26 crore in the previous year.
9. The percentage of gross NPA increased from 4.21% to 4.92% in FY18.

Q4 Results FY18

The bank released the audited financial results for the final quarter of the financial year spanning 2017-2018 and the results are as follows:

1. The interest earned by the bank over the course of the final quarter of FY18 was Rs.1,443.04 crore. This was an increase from the interest earned over the course of the previous quarter at Rs.1,332.24 crore.
2. The bank's income on investments dropped slightly from Rs.272.13 crore in the third quarter of FY18 to Rs.267.57 crore in the final quarter.
3. The total income of the bank increased by a little over Rs.210 crore which is quite a huge increase over a single quarter. The total income of the bank in the third quarter of FY18 was Rs.1,526.86 crore and this increased by Rs.210 crore to Rs.1,737.55 crore in the final quarter of the same financial year.
4. The operating expenses of the company increased from Rs.324.30 crore in the previous quarter to Rs.360.69 crore in the last quarter of FY18.
5. The total expenditure of the bank, excluding provisions and contingencies, increased by Rs.58 crore over the course of the quarter to Rs.1,262.22 crore.
6. Despite all positive indicators, the net profit over the course of the quarter was Rs.11 crore, in direct contrast to the net profit over the course of the previous quarter which was Rs.87.38 crore.
7. The percentage of gross NPA increased from 3.97% in the previous quarter to 4.92% in the last quarter of FY18.

Karnataka Bank Limited Stock Trends 2018

1. The stock began trading at an average price of about Rs.154 in the initial days of January 2018. The stock proceeded to increase in price over the course of the first two weeks but decreased right after that. The final price for the month of January 2018 was about Rs.147.
2. The share price continued to reduce over the course of the month of February 2018 with the stock reaching a low of about Rs.128. But the stock increased a little from that mark to close for the month at about Rs.135.
3. The shares declined in price again over the course of March 2018. The final price for the month was about Rs.114.
4. The stock appeared to increase in price at the beginning of April 2018 but declined pretty much soon after. There was a minor improvement in prices over the course of the final days of the month and the stock closed at about Rs.122 at the end of the month.
5. While the stock did fluctuate in May 2018, it did hold steady for the most part. The final price for the month was about Rs.119.
6. The stock price held steady for almost three quarters of the month of June 2018 but declined over the course of the final week. The final price for the month was approximately a disappointing Rs.109.
7. The price of the stock increased for two straight weeks in the month of July 2018. A final 30% dividend was announced on 11 July 2018. The price declined a lot after that but rallied again towards the close of the month. But the increase in prices did not help offset the losses. The final price for the month was about Rs.115.
8. In August 2018, the price of the stock increased till about the first week and held steady at over Rs.120 for the most part. The final price for the month was about Rs.119.
9. The stock held steady for almost three weeks in September 2018 but declined over the course of the last week. The final price for the month was about Rs.97.
10. The price of the stock held steady for most of October 2018. The final price for the month was close to Rs.98.

Karnataka Bank Limited Stock Trends 2016 and 2017

Stock trends in 2016

1. The stock began trading at about Rs.101 in the beginning of January 2016. The price declined steadily over the course of the month but held steady over the course of the last week. The stock declined a bit in February 2016 but recovered to the closing levels of January. March 2016 marked a period of increase in prices with the final price being about Rs.83. While this was an increase from the lows the shares hit during the course of the three months, it was not higher than the price the stock opened with for the year.
2. April 2016 marked a period of solid increase in prices. The final price for the month was about Rs.91. The price increased some more May 2016 with the final price being about Rs.104. In June 2016, the stock increased even more and the final price for the month was about Rs.114.
3. The stock increased even more in July 2016 and then remained steady from about mid-month. A final 50% dividend was announced on 20 July 2016. The final price for the month of July was about Rs.119. The stock declined in price over the course of the first two or three weeks of August 2016 but the stock gained a little in price over the course of the final week of the month. The final price for the month was about Rs.123. The price of the stock held steady for most of September 2016 but dipped a little in the final couple of days. The final price for the month was about Rs.119.
4. In October, the price of the stock went up but reduced again to close for the month at about Rs.122. There was a rights issue at a ratio of 1:2 for an FV of 10 on 24 October 2016. The stock largely declined in price over the course of November 2016 with the final price being about Rs.108. The stock held largely steady over the course of December 2016 to close for the month at about Rs.112.

Stock trends in 2017

1. In January 2017, the stock began trading at about Rs.113. The price increased till about the close of the third week of January 2017. The stock declined in price after that and the final price for the month was about Rs.114. The price of the stock fluctuated a lot in February 2017 but increased over the course of the last week to close at about Rs.137 at the end of the month. The price held steady for most of March 2017 and the final price for the month was about Rs.140.
2. In April 2017, the stock increased in price and the final price for the month was about Rs.163. The trend continued in May 2017 and while the price did decline a bit, the closing price for the month was still higher than the closing price for the previous month. The stock dipped in price during the course of the final week of June 2017 and the final price for the month was about Rs.163.
3. In July 2017, the stock marked a high of about Rs.165 by the end of the second week of the month but dipped after that. A final dividend of 40% was announced on 6 July 2017. The final price for July was about Rs.153. The price declined by a lot in August 2017 but recovered soon after to close for the month at about Rs.151. The stock declined again over the course of the final week of September 2017 to close at about Rs.141.
4. While the stock spiked in the initial days of October 2017, the price steadied over the course of the last couple of weeks of the month. The final price for the month was about Rs.162. The price held largely steady in November 2017 but closed at about Rs.155 for the month. The stock held steady in December and closed for the month at the slightly lower rate of around Rs.151.

Should you invest in Karnataka Bank Limited?

The following are some of the reasons why investing in the shares of Karnataka Bank Limited could be considered to give a good return later:

1. The bank is not a state-owned bank. The bank's classification grade has steadily improved and it is now a schedule A commercial bank.
2. The bank's income has risen steadily over the course of time.
3. The bank has managed to curtail its expenditures and in some cases, it has managed to reduce them by a lot.
4. The bank is well poised to work with the newer generation by connecting with them using digital banking methods.
5. The bank has tie-ups with other corporations and banks to offer a host of facilities.
6. Over the course of a decade, from 2008-2019 to 2017-2018, annually, the capital and reserves of the bank has increased as have the deposits, advances, and gross earnings. While net profit has fluctuated a bit, it has still been high.
7. The dividend paid out by the bank over the decade in question has never fallen below 30%.
8. The number of employees and branches have consistently increased over the course of the decade.
9. The percentage of gross NPA has not risen over 5% over the years and this is a very good sign that the bank is doing well.
10. As of 2018, the bank has over 8,000 employees, close to 1,50,000 shareholders, and almost 1 crore customers. The bank has been in existence for over nine decades now.

Considering the financial reports and other data, investing in the shares of this bank might be a good idea. But it would be best to do so after performing adequate personal research based on other factors.

Company information

The bank has 819 branches, almost 1,400 ATMs, and a number of lobbies that facilitate internet banking. All of these are spread out across India, with the bank having a presence in about 22 states and 2 union territories. The bank offers services such as private banking, retail banking, corporate banking, investment banking, finance and insurance, credit cards, mortgage loans, and wealth management.

History of the company

The bank was first incorporated on 18 February, in the year 1924 but commenced operations with regard to business on 23 May in the same year. The bank commenced operations in Dongerkery, Mangalore. The bank opened its second ever branch in Madras (now Chennai), in the year 1930. The third branch was opened in the town of Udupi. In 1947, the first branch in Bangalore was opened. In the year 1949, the bank celebrated the silver jubilee anniversary of its founding. During this time, the total deposits in the bank were worth Rs.56 lakh and the bank had provided advances of Rs.41 lakh. The total number of branches by this time was less than ten. In the year 1953, the bank's turnover exceeded one crore rupees for the first time. The 1960s marked a period of acquisitions for the bank with Karnataka Bank acquiring three banks that were smaller in size. The three banks were the Sringeri Sharada Bank, Chitradurga Bank, and Bank of Karnataka Hubli.

Coming to the early twenty first century history of the bank, it is to be noted that the bank implemented a core-banking solution called Finacle. This was done in collaboration with Infosys Technologies. The bank also partnered with Corporation Bank to share ATM kiosks. Karnataka Bank also introduced a card called the moneyplant card that allowed its customers to withdraw money from any of their Karnataka Bank accounts. In the year 2003, the bank shifted its headquarters to Kankanady from Kodialbail. By the year 2005-2006, the business turnover of the bank was Rs.21,000 crore. In the year 2006-2007, the bank finalized its deployment of Finacle. The bank tied up with Calyon Bank in France to provide risk management services.

Management of the company

The Board of Directors of the company includes the following individuals:

1. Mr. P. Jayarama Bhat - Part Time (Non-Executive) Chairman
2. Mr. Mahabaleshwara M.S - Managing Director and Chief Executive Officer
3. Mr. Ashok Haranahalli - Director
4. Mr. Rammohan Rao Belle - Director
5. Mr. B A Prabhakar - Director
6. Mr. Ullal Ravindra Bhat - Director
7. Mr. Keshav Krishanrao Desai - Director
8. Mr. D Surendra Kumar - Director
9. Mrs. Mythily Ramesh - Director

The senior executives of the bank include the following individuals:

Shri. Raghavendra Bhat. M - Chief Operating Officer

Shri Chandrashekar Rao B - General Manager

Shri Subhaschandra Puranik - General Manager

Shri Balachandra Y V - General Manager

Shri Muralidhar Krishna Rao - General Manager

Shri Nagaraja Rao B - General Manager

Shri Gokuldas Pai - General Manager

Shri Manjunatha Bhat B K - General Manager

Shri Mahalingeshwara K - General Manager

The list of deputy general managers of the bank comprises the following individuals:

Shri I. Santosh Kumar

Shri Ramesh S, CRO & CISO

Shri Nirmal Kumar Kechappa Hegde, CCO

Shri Suresh K

Shri Ravishankar N R

Shri Raja B S

Shri Rajakumar P H (RH)

Shri Vinaya Bhat P J

Shri Satheesha Shetty (RH)

Shri G T Hegde

Shri Vijayashankar Rai K V

Shri Ananthapadmanabha B

Shri Ranganatha

Shri Ravindranath Hande H P

Shri Venkatakrishna Bhat, CTO

Shri Vadiraj K A

Shri Ravichandran S (RH)

The MD and CEO of Karnataka Bank, Mr. Mahabaleshwara M.S, took up his current position of responsibility on 15 April 2017. He has over three decades of experience in the banking industry. What is interesting is that he has a Master's degree in Agriculture and has also completed his CAIIB (Certified Associate of the Indian Institute of Bankers) certification. He also has a post graduate diploma in Business Management. Before taking up the position of MD and CEO, he was the Chief General Manager at the bank. His initial career revolved around researching and teaching agricultural science. This led to his appointment as Agricultural Field Officer with Karnataka Bank. Then, eventually, he climbed the ranks to Chief General Manager and MD and CEO.

One significant contribution that he made was launching the KRISHI Card Scheme of the Karnataka Bank. He was an outstanding branch head, receiving membership of the Chairman's Club five times for his contributions and achievements in that capacity. As a regional head at New Delhi, he expanded the reach of the bank in North India. He managed the region so well that his region was awarded "Best region" of the bank, twice. He also worked with KPMG to improve the business processes used in the bank and through this, he worked on implementing digital gateways and banking initiatives. The bank partnered with the illustrious Boston Consulting Group for this. Under Mr. Mahabaleshwara's able leadership, the bank has crossed the milestone of having done one lakh crore worth of business.

Karnataka Bank Limited Listing in BSE, NSE, and other indices

Karnataka Bank is listed under the following codes on the BSE and the NSE:

1. BSE: 532652
2. NSE: KTKBANKEQ
3. IND: Finance - Banks - Private Sector
4. ISIN Code: INE614B01018
5. SECT: Banks

The following indices have the bank as a constituent:

1. Nifty 500
2. Nifty Full Smallcap 100
3. Nifty MidSmallcap 400
4. Nifty Smallcap 250
5. S&P BSE 400 MidSmallCap Index
6. S&P BSE AllCap
7. S&P BSE Finance
8. S&P BSE SmallCap
9. Nifty Dividend Opportunities 50
10. Nifty High Beta 50
11. Nifty Smallcap 100
12. S&P BSE 250 SmallCap Index
13. S&P BSE 500
14. S&P BSE Dollex - 200
15. S&P BSE MidSmallCap
16. S&P BSE SmallCap Select Index

Registered office

The corporate office of the bank is located at the following address:

Karnataka Bank Limited, Post Box No. 599, Mahaveera Circle, Kankanady, Mangalore - 575 002, Dakshina Kannada District, Karnataka, India

Phone number: 0824 2228222

Fax: 0824 2225588

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DISCLAIMER:

The contents of this post/blog does not constitute financial or other professional advice nor does it imply in any manner a principal-agent relationship, and is not a professional advice on a specific financial matter.