Anand Rathi is bullish on Karnataka Bank has recommended buy rating on the stock with a target price of Rs 60 in its research report dated October 19, 2020.
Banks will not disclose the full NPA figures in the second quarter drawing comfort from a recent Supreme Court ruling that says all borrowal accounts that are standard as on August 31 cannot be declared as NPAs till further orders.
Total income rose to Rs 1,933.52 crore in the quarter under review, against Rs 1,902.41 crore in the same period of 2019-20, Karnataka Bank said in a regulatory filing.
The bank had posted a net profit of Rs 105.91 crore in the July-September period of the previous fiscal.
Anand Rathi recommended hold rating on Karnataka Bank with a target price of Rs 60 in its research report dated July 13, 2020.
The bank's total income during the April-June 2020 quarter rose to Rs 2,134.63 crore, from Rs 1,794.33 crore a year ago, it said.
Anand Rathi is bullish on Karnataka Bank has recommended buy rating on the stock with a target price of Rs 60 in its research report dated June 09, 2020.
Sequentially, net profit in the three months to March declined significantly from Rs 123.14 crore in the third quarter of FY20.
Blackrock Advisors also sold 17,92,796 shares of PTC India at Rs 33.46 per share and 16,42,384 shares of Karnataka Bank at Rs 34.83 per share.
As bank had already made full provision, there is no other financial impact other than the penalty amount.
Giving details, it said the statutory inspection of BoI with reference to its financial position as on March 31, 2017 and March 2018 and the risk assessment reports pertaining thereto revealed, inter-alia, non-compliance with the certain directions.
Gross NPA of the bank rose to 4.99 percent from 4.78 percent, while net NPA was up at 3.75 percent against 3.48 percent, QoQ.
The gross non-performing asset (NPA) of the bank rose to 4.99 per cent of assets from 4.45 per cent in the year-ago period.
The lender said that the borrowing account was classified as non-performing asset (NPA) in July 2015 and had been fully provided for and as such, no negative impact on the bank's profitability at present.
Trends on SGX Nifty indicate a positive opening for the broader index in India, with a 42 points gain or 0.37 percent.
The asset quality of the bank showed a slight blip as gross non-performing assets (NPAs) rose to 4.78 per cent of the gross advances as on September 30, up from 4.66 per cent a year ago.
Since September 20, most stocks on the BSE 500 index have shed their gains on corporate default fears, PMC crisis and Q2 earnings
Net interest income dipped 11.20 per cent to Rs 480.88 crore in March quarter, as against Rs 541.51 crore in the year-ago period.