Karnataka Bank Stock Price Analysis and Quick Research Report. Is Karnataka Bank an attractive stock to invest in?

The Indian Banking sector is rising rapidly due to infrastructure spending, favorable government policy, rising disposable income and increasing consumerism and easier access to credit.

The banking industry is in boom with growing demand across India. But is it the right time to invest in banking stocks is the question to be asked? We can look into more details and dig a little deeper into the analysis of the stock.

Karnataka Bank stock price today is Rs 205.43. Let’s look at how Karnataka Bank is performing and if it is the right time to buy the stock of Karnataka Bank with detailed analysis.

•  For Banking companies, The primary source of Income is interest earned on various loans given to individuals and corporates. Karnataka Bank has earned Rs 8298.5095 Cr. revenue in the latest financial year. Karnataka Bank has posted decent revenue growth of 10.0138853633789 % in last 3 Years.

• In terms of advances, Karnataka Bank reported 19.2772 % YOY,  rise . If you see 3 years advance growth, it stands at 11.5507672632726 %.

• Currently, Karnataka Bank has a CASA ratio of 31.9688 %. It’s overall cost of liability stands at 4.8799 %. Also, the total deposits of Karnataka Bank from these accounts stood at Rs 98057.8271 Cr.

• Karnataka Bank has a healthy ROA track record. The ROA of Karnataka Bank is at 1.2143 %.

• The Lender is inefficiently  managing it’s overall asset portfolio. The Gross NPA and Net NPA stood at 3.53 % and 1.58 % respectively as on the latest financial year.

• One other important measure of banks’ financial health is provisioning coverage ratio. The YoY change in provision and contingencies is negative at -21.7163740982588 % which means it has decreased from the previous year.

• Non-Interest income or other incomes are very important for banks as it gives a regular source of income for bank with no additional risk. Other income of Karnataka Bank surged and is currently at Rs 1318.9168 Cr.

• Karnataka Bank has a Good Capital Adequacy Ratio of 18 .

• The best metric which provides insights about bank’s valuation is P/B ratio. Currently Karnataka Bank is trading at a P/B of 0.6701 . The historical average PB of Karnataka Bank was 0.435714457884343.

• Share Price: - The current share price of Karnataka Bank is Rs 205.43. One can use valuation calculators of ticker to know if Karnataka Bank share price is undervalued or overvalued.