External broker reports(aggregated public sources), Axis Direct

Axis Direct

External broker reports(aggregated public sources)

Axis Direct is the flagship brand under Axis Securities Limited, a subsidiary of Axis Bank in India. 

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Equity Bottom-Up

<div><div><div><div><ul><li>Loan growth momentum to continue: Once the expected loan growth of 15% for FY23 is achieved, management would focus to grow the bank’s advances slightly higher than the industry growth, thereby maintaining robust credit growth momentum.</li><li>Uptick expected in the CASA ratio: With a focus on large corporates and the government agency business, the management expects to onboard employees' salary accounts, which would aid in increasing its CASA ratio moving forward.</li><li>Improving Asset Quality: The bank’s GNPA and NNPA improved meaningfully from the levels a couple of quarters back, and with the slippage ratio expected to moderate going forward, we believe the bank’s asset quality to continue improving going forward.</li></ul></div></div></div></div><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Loan growth momentum to continue: Once the expected loan growth of 15% for FY23 is achieved, management would focus to grow the bank’s advances slightly higher than the industry growth, thereby maintaining robust credit growth momentum.Uptick expected in the CASA ratio: With a focus on large corporates and the government agency business, the management expects to onboard employees' salary accounts, which would aid in increasing its CASA ratio moving forward.Improving Asset Quality: The bank’s GNPA and NNPA improved meaningfully from the levels a couple of quarters back, and with the slippage ratio expected to moderate going forward, we believe the bank’s asset quality to continue improving going forward.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Karnataka Bank - Steady Growth Momentum; Improved Asset Quality

<ul><li>Karnataka Bank (KBL) reported a stellar performance in Q2FY23, beating our expectations across all fronts.</li><li>KBL has reported its highest-ever PAT of 412 Cr for the quarter and also its highest-ever PAT of 526 Cr for the first half of any financial year in its history.</li><li>Advances grew by 9.9%/2.6% YoY/QoQ and stood at Rs 59,872 Cr. Aided by strong growth in advances and a higher yield on loan books, NII grew by 26%/16.8% YoY/QoQ to Rs 803 Cr.</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Karnataka Bank (KBL) reported a stellar performance in Q2FY23, beating our expectations across all fronts.KBL has reported its highest-ever PAT of 412 Cr for the quarter and also its highest-ever PAT of 526 Cr for the first half of any financial year in its history.Advances grew by 9.9%/2.6% YoY/QoQ and stood at Rs 59,872 Cr. Aided by strong growth in advances and a higher yield on loan books, NII grew by 26%/16.8% YoY/QoQ to Rs 803 Cr.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Karnataka Bank - Beat in Expectations on All Fronts; Poised for Re-Rating

<p>We maintain SELL on the stock with a target of Rs 60/share(~0.25x FY23E ABV).</p><ul><li>Karnataka Bank (KBL) reported mixed results in Q3FY22 with pressure on operating profits due to muted loan growth, the decline in NIM and non-interest income.</li><li>Earnings growth of 8%/17% YoY/QoQ to Rs 147 Cr was led by lower provisions which were down 35%/60% YoY/QoQ. Loan growth continues to lag at Rs 55,489 Cr (up 4.3% YoY and 1.9% QoQ). NII was up 1% YoY but down 2.3% QoQ to Rs 623 Cr.</li><li>Pressure on yields (on advances) was visible with a 57bps /10bps decline to 8.81%. Cost of deposits marginally increased by 4bps QoQ to 4.68%. The bank’s NIM subsequently declined by 8bps /13bps YoY/QoQ to 3.18%.</li></ul><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

We maintain SELL on the stock with a target of Rs 60/share(~0.25x FY23E ABV).Karnataka Bank (KBL) reported mixed results in Q3FY22 with pressure on operating profits due to muted loan growth, the decline in NIM and non-interest income.Earnings growth of 8%/17% YoY/QoQ to Rs 147 Cr was led by lower provisions which were down 35%/60% YoY/QoQ. Loan growth continues to lag at Rs 55,489 Cr (up 4.3% YoY and 1.9% QoQ). NII was up 1% YoY but down 2.3% QoQ to Rs 623 Cr.Pressure on yields (on advances) was visible with a 57bps /10bps decline to 8.81%. Cost of deposits marginally increased by 4bps QoQ to 4.68%. The bank’s NIM subsequently declined by 8bps /13bps YoY/QoQ to 3.18%.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

<p>Karnataka Bank(KBL): Q1FY22results were a mixed bag with improved NIM and lower C-I but with higher restructuring and lower non-interest income. NII was up 7%/25% YoY/QoQ led by improvement in NIM by 9bps/57bps YoY/QoQ to 2.98%. The loan book was down 4.5% YoY and up 0.2% QoQ to Rs 51,791Cr. Loan mix composition included Retail/Mid-Corporate/Large Corporate at 52%/34%/14% as the bank has run down its large corporate book from 30% in Mar’19.Non-interest income growth was muted, down55%/37% YoY/QoQ.C-I ratio has improved to 48.9% from 53.9% QoQ. This led to PPOP growth of 8% QoQ but down 39% YoY to Rs 414 Cr. G/NNPAs marginally improved to 4.8%/3% from 4.9%/3.2% QoQ. Provisions declined 28% YoY but wereup 8% QoQ to Rs 368 Cr. PAT was down 46% YoY and up 238% QoQ to Rs 106 Cr, supported by a tax write-back of Rs 60 Cr during the quarter.</p><p>We maintain SELL on the stock with a target of Rs 50/share (~0.25x FY23E ABV).</p><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

Karnataka Bank(KBL): Q1FY22results were a mixed bag with improved NIM and lower C-I but with higher restructuring and lower non-interest income. NII was up 7%/25% YoY/QoQ led by improvement in NIM by 9bps/57bps YoY/QoQ to 2.98%. The loan book was down 4.5% YoY and up 0.2% QoQ to Rs 51,791Cr. Loan mix composition included Retail/Mid-Corporate/Large Corporate at 52%/34%/14% as the bank has run down its large corporate book from 30% in Mar’19.Non-interest income growth was muted, down55%/37% YoY/QoQ.C-I ratio has improved to 48.9% from 53.9% QoQ. This led to PPOP growth of 8% QoQ but down 39% YoY to Rs 414 Cr. G/NNPAs marginally improved to 4.8%/3% from 4.9%/3.2% QoQ. Provisions declined 28% YoY but wereup 8% QoQ to Rs 368 Cr. PAT was down 46% YoY and up 238% QoQ to Rs 106 Cr, supported by a tax write-back of Rs 60 Cr during the quarter.We maintain SELL on the stock with a target of Rs 50/share (~0.25x FY23E ABV).Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

India Financials

Saumya Agarwal

<p>Karnataka Bank kicked-off the Q3FY21 earnings season for Indian Banks. With the asset quality standstill benefit lapsing now, Q3 saw a spike in write-offs even as the overall gross NPA’s trended lower, for Karnataka Bank. The Bank has been re-balancing its advances portfolio and improving its collection efficiency to offset the impact but reigning in Write-offs crucial</p>

Karnataka Bank kicked-off the Q3FY21 earnings season for Indian Banks. With the asset quality standstill benefit lapsing now, Q3 saw a spike in write-offs even as the overall gross NPA’s trended lower, for Karnataka Bank. The Bank has been re-balancing its advances portfolio and improving its collection efficiency to offset the impact but reigning in Write-offs crucial

Karnataka Bank Q3FY21: Re-Shuffling Loans and Improved Recoveries Positive but Write-Offs Spike

India

Karnataka Bank Ltd is a full-service bank. The Bank accepts deposits, makes loans and provides other services for the public.

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Karnataka Bank (KBL IN)

Karnataka Bank - Steady Growth Momentum; Improved Asset Quality

Once the expected loan growth of 15% for FY23 is achieved, management would focus to grow the bank’s advances slightly higher than the industry growth

Axis Direct

Karnataka Bank - Beat in Expectations on All Fronts; Poised for Re-Rating

KBL has reported its highest-ever PAT of 412 Cr for the quarter and also its highest-ever PAT of 526 Cr for the first half of any financial year in...

Axis Direct

Result Update:Karnataka Bank

Karnataka Bank (KBL) reported mixed results in Q3FY22 with pressure on operating profits due to muted loan growth, the decline in NIM and non...

Axis Direct

Karnataka Bank: Mixed Performance

We maintain SELL on the stock with a target of Rs 50/share (~0.25x FY23E ABV). Q1FY22results were a mixed bag with improved NIM and lower C-I but...

Axis Direct

Karnataka Bank Q3FY21: Re-Shuffling Loans and Improved Recoveries Positive but Write-Offs Spike

With the asset quality standstill benefit lapsing in Q3FY21, how did Karnataka Bank fare on asset quality and what is its strategy to manage it

Saumya Agarwal

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