Karnataka Bank raises deposit interest rates.
10 BPS increase for 1 to 2 years period deposits and 20 BPS increase for above 2 years to 5 years deposits. Accordingly, the rate of interest for 1-2 years deposits will be 5.35 % p.a. and above 2 years to 5 years and above 5 years to 10 years the rate will be 5.60 % p.a. & 5.70 % p.a. respectively for amount ranging from ` 2 crore & up to ` 10 crore.
The above rates are effective from June 10, 2022.
Stocks in News
TVS Motor Company: Subsidiary TVS Motor (Singapore) Pte. Limited has acquired a 70 percent stake in United Kingdom-based EBCO, for GBP 1,163,070. EBCO provides smart connected mobility solutions through a pipeline of e-bikes across the city and mountain biking segments. The company has tie ups with most major dealers across the United Kingdom and is the exclusive distributor of Corratec e-bikes in the UK. In addition, TVS Motor registers sales of 3.07 lakh units in March 2022, which fell compared to 3.22 lakh units sold in same month last year.
Hero MotoCorp: The company sold 4.50 lakh units of motorcycles and scooters in March 2022, declined sharply compared to 5.76 lakh units sold in corresponding month last year. In the financial year (FY22), sales dropped to 49.44 lakh units, compared to 57.91 lakh units sold in previous year.
GOCL Corporation: The company has received a notice of demand of Rs 45.72 crore from the Income Tax Department. This notice is in connection with Joint Development Agreement for the land at Kukatpally, Hyderabad, pertaining to assessment year 2013-14. But as per the company, aforesaid notice is not tenable in law.
Karnataka Bank: The bank clocked 6.27 percent growth in core deposits at Rs 80,385 crore for the year ended March 2022 compared to previous financial year, and gross advances during the same period grew by 9.5 percent to Rs 57,726 crore. The share of CASA to total deposits stands increased at 32.97 percent at March 2022, against 31.5 percent at the end of March 2021. The private sector lender expects 12 percent growth in deposits and about 17 percent in gross advances for FY23.
JSW Energy: Subsidiary JSW Neo Energy (JSWNEL) has entered into a Memorandum of Understanding with the Government of Chhattisgarh for setting up 1,000 MW capacity of hydro pumped storage project (Hasdev Bango Pumped Storage Project) in Chhattisgarh.
Alkem Laboratories: ISP Chile (Public Health Institute of Chile) had conducted an inspection at the company's manufacturing facility at Daman, India during March 28 to April 1, 2022. At the end of the inspection, no observations critical to good manufacturing practices were detected.
Lupin: The company has signed Definitive Agreement with Anglo-French Drugs & Industries for acquiring a portfolio of brands. This will strengthen the company's presence in vitamins, minerals & supplements and CNS segments.
Dr Reddy's Laboratories: The company has entered into an agreement with Novartis AG to acquire the cardiovascular brand Cidmus in India. The acquisition cost is $61 million. The Cidmus is indicated for heart failure patients with reduced ejection fraction.
#HEROMOTOCO #LUPIN #DRREDDY #TVSMOTOR #KTKBANK
#KTKBANK will declare results on Oct 28, 2021
Do you have any view on the results? Let's aggregate whatever information we have from other sources for everyone's benefit.
#COFFEEDAY #KTKBANK #RBLBANK
Karnataka Bank Q1FY22 (Consolidated)
• NII up 7% at Rs 574.79 crore Vs Rs 535.12 crore (YoY)
• Net profit down 46% at Rs 105.91 crore Vs Rs 196.38 crore (YoY)
• GNPA at 4.82% Vs 4.91% (QoQ)
• NNPA at 3% Vs 3.18% (QoQ)
• Provisions up 7.6% at Rs 368.08 crore Vs Rs 341.83 crore
#ALOKTEXT #KTKBANK #NEULANDLAB
#KTKBANK , #TATAELXSI , #SSWL Filatex India, Hathway Bhawani Cabletel, HPL Electric & Power, Indbank Merchant Banking Services, Ind Bank Housing, ATV Projects India, Continental Securities, Mideast Integrated Steels, Trade Wings, Vikas Multicorp will announce their quarterly earnings on January 12
ABOVE - 59
TARGET - 60 / 61
SL - 57
*Karnataka Bank Q2 (Standalone, YoY)*
Net Interest Income up 15.3% to Rs 574.9 crore
Net Profit up 12.7% to Rs 119.35 crore
Total Covid-19 provisions at Rs 97.99 crore at the end of September
GNPA at 3.97% versus 4.64% (QoQ) NNPA at 2.21% versus 3.01% in (QoQ)
Total deposits up 3.9% at Rs 72,922.6 crore
Total advances up 1.2% at Rs 54,098.9 crore
*Karnataka Bank Q2FY21 results and concall highlights:*
Strong operational performance: NII at Rs5.8bn (+15.3% YoY) beat our estimates and was led by strong traction in retail / SME loans, the key focus area for the bank, even as overall loans grew a mere 1.2% YoY. NIM at 2.75% (calc). improved 19bps QoQ / 25bps YoY. Reported NIM came in at 3.08% (vs. 2.82% in Q2FY20). Treasury gains came in at Rs1.56bn and with cost-control measures (Opex. up mere 2.6% YoY); Operating profit at Rs5.0bn grew 21% YoY (our estimates at Rs4.8bn +17.1% YoY). Provisions came in at Rs3.2bn; PCR (calc) has inched to 45.4% (vs. 36.2% QoQ). GNPA at Rs21.9bn declined 15.6% YoY / NNPA at Rs11.9bn declined 36% YoY. PCR (incl. tech w/off) has inched to 75.4%; management has indicated at scaling the overall PCR to 80% levels by Mar’21.
*Loan growth led by retail / SME segment; CASA traction remains healthy:* Retail loans (+8.6% YoY) / SME segment (+16.5% YoY) remains the key focus area for the bank and was led by gold loans (+22% YoY); home loans (+13% YoY); agri loans (+20% YoY) on the retail front. On the SME side – management indicated for healthy traction in core MSME segment and Emergency Credit Line Guarantee Scheme (ECLGS) following outbreak of Covid-19 as growth drivers. The bank has disbursed loans to the tune of Rs16bn under the ECLGS scheme. Management hinted at strong client acquisition from other regional bank / PSU entities. On the deposit side, CASA deposits grew 10.6% YoY vs. 3.9% YoY growth in overall deposits. CASA ratio stood at 29.2% vs. 27.4% YoY.
*Morat portfolio now at 11.4% of loans (vs. 51% as at June’20):* Management highlighted that strong focus at recovery has seen overall morat portfolio reduce to 11.4% (with no major sector exposure being in excess of 15%) vs. 51% as at June’20. *_While the bank expects overall morat portfolio to reduce to 1% by Dec’20, management has hinted at a) 2% of the overall morat portfolio to come up for restructuring as per the RBI directive and b) ~50-60bps of slippages from the morat portfolio in ensuing quarter. Two proposals amounting to Rs5bn (One from trading sector and another from infra and being consortium in nature) are expected to come up for restructuring in ensuing quarter.*_ Restructuring portfolio stood at Rs6.4bn as at Sept’20. We will watch for trend in restructuring portfolio.
*Capital position strong; NPA decline*: CAR /Tier-I CAR stood at 13.1% / 11.1% respectively. Including H1FY21 profit CAR stand at 13.8%. Slippages for the quarter stood at a mere ~Rs40mn; recovery came in at Rs1.56bn and tech w/off at Rs1.7bn. Focus now shifts towards slippages from morat portfolio / restructuring portfolio and provision requirement.
Morat at 51.2% of book
GNPA improves due to write off at Rs363cr, +151.2%QOQ
Worst ever loan growth at +2.6%YOY & -4.8%QOQ
Restructured bk at Rs601cr, +11.9%QOQ
Other inc & sharp decline in opex aids optng profit
Tax write back aids PAT
NIM improved to 2.89%; highest in 6qtrs
Slippages at Rs167cr, -45.1%QOQ
GNPA ratio is lowest in 4qtrs at 4.64%
NII at Rs535cr, +8.2%YOY & +1.1%QOQ
PAT at Rs196cr, +12%YOY & +619.1%QOQ
*Karnataka Bank Q4FY20*
Net profit down 56% to Rs 27.3 crore Net Interest Income up 29% to Rs 529.3 crore
Gross NPA at 4.82% from 4.99% in the previous quarter
Net NPA at 3.08% from 3.75% in the previous quarter
Provisions at Rs 356.5 crore from Rs 314.7 crore in the previous quarter Covid-19 related provisions worth Rs 24.08 crore
Provision Coverage Ratio at 64.7% Net profit and Net Interest Income is compared on a year-on-year basis