Shares of the Karnataka Bank Ltd. tumbled over 12% on Wednesday, the highest single day fall since March 2020, after its non-performing assets rose and net interest margin narrowed.
The private sector lender's standalone net interest margin narrowed 35 basis points to 3.46% in the quarter ended December from 3.81% in the year-ago period, according to an exchange filing on Tuesday.
Karnataka Bank Q3 FY24 Earnings Highlights (Standalone)
Net interest income down 1% at Rs 827.6 crore. (YoY).
Net profit up 10% at Rs 331.1 crore. (YoY).
Net interest margin fell to 3.46% from 3.81% (YoY)
Gross NPA widen to 3.64% vs 3.4% (QoQ).
Net NPA at 1.55% vs 1.36% (QoQ).
On the NSE, the bank's stock fell as much as 12.60% during the day to Rs 233.10 apiece, the lowest since Jan. 3. It was trading 8.79% lower at Rs 243.25 per share compared to a 0.66% advance in the benchmark Nifty 50 as of 10:24 a.m.
The share price has risen 66.67% in the last 12 months. The total traded volume so far in the day stood at 5.8 times its 30-day average. The relative strength index was at 45.36.
Three analysts tracking the company have a 'buy' rating on the stock, according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 40.3%.
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