External broker reports(aggregated public sources), Axis Direct

Axis Direct

External broker reports(aggregated public sources)

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Equity Bottom-Up

<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

Thematic (Sector/Industry)

<ul><li>The systemic credit growth continues to remain robust and at a multi-year high, supported by continued growth in the Retail and SME segment.</li><li>Corporate loans show gradual signs of revival. With the festive season beginning slightly early, a small part of the credit growth from festive demand (which is expected to be healthy) will be reflected in Q2FY23.</li><li>Even as credit growth continues to gather pace, deposit growth continues to lag on a systemic level and discussion around deposit accretion to support the robust credit growth will remain in focus.</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>

The systemic credit growth continues to remain robust and at a multi-year high, supported by continued growth in the Retail and SME segment.Corporate loans show gradual signs of revival. With the festive season beginning slightly early, a small part of the credit growth from festive demand (which is expected to be healthy) will be reflected in Q2FY23.Even as credit growth continues to gather pace, deposit growth continues to lag on a systemic level and discussion around deposit accretion to support the robust credit growth will remain in focus.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.

BFSI Q2fy23 Result Preview – yet Another Strong Quarter!

<div><div><div><div><ul><li>Q2FY23 marked a cool-off in the key commodity prices including the base metals and the crude oil as against the Q1FY23 period that witnessed elevated commodity prices, which had changed the inflation dynamics significantly.</li><li>To curb the prevailing inflation problem, all central banks including the RBI have adopted a path of aggressive policy tightening.</li><li>The RBI increased the repo rate by 50bps in Sep’22 MPC, marking a total policy rate hike of 190bps to 5.9%.</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></div></div></div></div>

Q2FY23 marked a cool-off in the key commodity prices including the base metals and the crude oil as against the Q1FY23 period that witnessed elevated commodity prices, which had changed the inflation dynamics significantly.To curb the prevailing inflation problem, all central banks including the RBI have adopted a path of aggressive policy tightening.The RBI increased the repo rate by 50bps in Sep’22 MPC, marking a total policy rate hike of 190bps to 5.9%.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.

Q2fy23 Preview - Non-Commodities Likely to Do Better

<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

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 - 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

BFSI Q2fy23 Result Preview – yet Another Strong Quarter!

The systemic credit growth continues to remain robust and at a multi-year high, supported by continued growth in the Retail and SME segment.

Axis Direct

Q2fy23 Preview - Non-Commodities Likely to Do Better

Q2FY23 marked a cool-off in the key commodity prices including the base metals and the crude oil as against the Q1FY23 period that witnessed...

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

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