Karnataka Bank Q1 Results Review - Healthy Quarter, Growth Momentum Gaining Traction: Axis Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Axis Securities Report.Operational Performance: Karnataka Bank Ltd. reported a healthy advances growth of 18/3% YoY/QoQ, led by strong growth in the corporate segment (+29/4% YoY/QoQ) and a gradual pick-up in the retail segment (+11/4% YoY/QoQ). Deposit growth stood at 15/2% YoY/QoQ, mainly led by term-deposits (+18/4% YoY/QoQ), while current account and savings account deposits de-grew by 2% QoQ. CASA ratio stood at 30.5% versus 32.0% YoY/QoQ. C-D ratio stood at 73.8% versus 70.7/72.9% YoY/QoQ..Financial Performance: Net interest income grew by 11/8% YoY/QoQ led by healthy growth and a 24 bps QoQ improvement in NIMs, which stood at 3.54% versus 3.3% QoQ. Non-interest income de-grew sharply by 14/33% YoY/QoQ owing to slower fee income growth and lower recoveries from w/off accounts. Opex growth decelerated and de-grew by 17% QoQ resulting in a cost-income ratio improvement to 52.8% versus 60.1% QoQ. Pre-provision operating profit growth was healthy at 12% QoQ. Provisions were significantly lower (credit costs at 22 bps) versus our expectations resulting in a strong beat on our earnings estimates. PAT grew by 8/46% YoY/QoQ. Asset quality remained steady, with gross non-performing asset and net non-performing asset holding firm at 3.5% and 1.7%, respectively, flat QoQ. Slippages were well controlled, with a slippage ratio of ~2.3% compared to 3% QoQ..Click on the attachment to read the full report:.DCB Bank Q1 Results Review - One-Offs, Higher Opex Drag Down Earnings: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Karnataka Bank Q1 Results Review - Healthy Quarter, Growth Momentum Gaining Traction: Axis Securities

Karnataka Bank's improved growth visibility, coupled with a comfortable credit-deposit ratio, is expected to drive robust credit growth in the medium term, says the brokerage.

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Karnataka Bank Q1 Results Review - Healthy Quarter, Growth Momentum Gaining Traction: Axis Securities

Karnataka Bank's improved growth visibility, coupled with a comfortable credit-deposit ratio, is expected to drive robust credit growth in the medium term, says the brokerage.

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