Karnataka Bank Ltd. (IN:KTKBANK)
:KTKBANK
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Karnataka Bank Ltd.
(KTKBANK)
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Rating:74Outperform
Price Target:
₹300.00
▲(49.96% Upside)
Action:ReiteratedDate:03/11/26
The score is driven by strong technical momentum and attractive valuation (low P/E plus dividend yield). Financial performance is mixed: reported growth/profitability and a solid FY2025 balance sheet are offset by very weak and volatile FY2025 operating/free cash flow, which meaningfully raises earnings-quality risk.
Positive Factors
Strong Revenue Growth
A sustained ~51% revenue increase with higher net income signals expanding lending and fee businesses and improved scale. That growth strengthens recurring earnings capacity, supports reinvestment into distribution and digital channels, and bolsters medium‑term ROE resilience.
Negative Factors
Weak Cash Flow Conversion
Sharp negative operating and free cash flows reflect weak cash conversion and elevated volatility in balance-sheet flows. If persistent, this undermines earnings quality, increases dependency on external funding, and could necessitate balance-sheet or capital adjustments over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Growth
A sustained ~51% revenue increase with higher net income signals expanding lending and fee businesses and improved scale. That growth strengthens recurring earnings capacity, supports reinvestment into distribution and digital channels, and bolsters medium‑term ROE resilience.
Read all positive factors
Karnataka Bank Ltd. (KTKBANK) vs. iShares MSCI India ETF (INDA)
Market Cap
₹103.74B
Dividend Yield2.42%
Average Volume (3M)65.77K
Price to Earnings (P/E)6.7
Beta (1Y)0.91
Revenue Growth1.19%
EPS Growth-12.44%
CountryIN
Employees8,900
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)30.37
Shares Outstanding378,181,550
10 Day Avg. Volume57,471
30 Day Avg. Volume65,774
Financial Highlights & Ratios
PEG Ratio-0.35
Price to Book (P/B)0.56
Price to Sales (P/S)0.66
P/FCF Ratio-1.01
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)33.2
Revenue Forecast (FY)₹48.44B
Karnataka Bank Ltd. Business Overview & Revenue Model
Company Description
The Karnataka Bank Limited provides personal and business banking products and services in India. It operates through four segments: Treasury Operations, Corporate/Wholesale Banking, Retail Banking, and Other Banking Operations. The company offers...
How the Company Makes Money
Karnataka Bank makes money primarily through (1) net interest income and (2) non-interest (fee and other) income. Net interest income is earned from the spread between interest received on interest-earning assets—mainly loans and advances (such as...
Karnataka Bank Ltd. Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
84
Very Positive
Cash Flow
38
Negative
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 103.64B | 102.83B | 96.17B | 82.13B | 71.66B | 75.68B |
| Gross Profit | 44.80B | 45.80B | 46.26B | 41.78B | 34.36B | 22.91B |
| EBITDA | 14.70B | 17.26B | 0.00 | 15.27B | 7.68B | 6.85B |
| Net Income | 11.48B | 12.73B | 13.07B | 11.80B | 5.08B | 4.82B |
Balance Sheet | ||||||
| Total Assets | 1.19T | 1.21T | 1.16T | 990.58B | 920.40B | 855.81B |
| Cash, Cash Equivalents and Short-Term Investments | 74.68B | 79.84B | 79.93B | 116.16B | 44.37B | 53.16B |
| Total Debt | 13.09B | 19.41B | 44.48B | 15.63B | 14.64B | 17.79B |
| Total Liabilities | 1.06T | 1.09T | 1.05T | 908.45B | 849.46B | 789.39B |
| Stockholders Equity | 125.89B | 120.85B | 108.48B | 82.13B | 70.94B | 66.42B |
Cash Flow | ||||||
| Free Cash Flow | 22.94B | -67.03B | 5.69B | 17.41B | -5.24B | 32.81B |
| Operating Cash Flow | 23.35B | -65.40B | 6.81B | 18.30B | -4.67B | 33.68B |
| Investing Cash Flow | -404.90M | -6.91B | -1.11B | -875.20M | -564.34M | -874.12M |
| Financing Cash Flow | -28.10B | 71.61B | 122.72B | -194.60M | -3.55B | -8.85B |
Karnataka Bank Ltd. Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | ₹116.30B | 6.14 | ― | 2.15% | 9.03% | 13.11% | |
77 Outperform | ₹107.53B | 6.70 | ― | 1.05% | 7.99% | 5.83% | |
74 Outperform | ₹103.74B | 6.68 | ― | 2.42% | 1.19% | -12.44% | |
68 Neutral | ₹201.79B | 12.39 | ― | 0.69% | 17.48% | 17.90% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | ₹59.89B | 6.53 | ― | 0.76% | 14.38% | 17.18% | |
58 Neutral | ₹68.00B | 13.04 | ― | ― | 24.35% | 6.65% |
* Financial Sector Average
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Karnataka Bank Ltd. Corporate Events
Karnataka Bank files annual SEBI-mandated disclosure on non-convertible debt securities
Apr 8, 2026
Karnataka Bank has filed its annual disclosure on non-convertible debt securities for FY 2025-26, in line with SEBI’s centralized database requirements for corporate bonds and debentures and the regulations governing non-convertible securiti...
Karnataka Bank Discloses Rs 300 Crore Long-Term Bonds in SEBI-Mandated Filing
Apr 8, 2026
Karnataka Bank has reported its half-yearly disclosure on debt securities issued on a private placement basis, as required under SEBI’s Non-Convertible Securities regulations for the period ended March 31, 2026. The filing pertains to NSE- a...
Karnataka Bank Reports Provisional Growth in Deposits, CASA and Advances for FY 2025-26
Apr 1, 2026
Karnataka Bank has reported provisional key business parameters for the year ended 31 March 2026, indicating moderate growth in its core banking operations. Total deposits rose 3.8% year-on-year to ₹108,840.95 crore, while the CASA book incr...
Karnataka Bank Independent Director D.S. Ravindran Resigns, Vacates Key Board Committees
Mar 7, 2026
Karnataka Bank has announced that Dr. D.S. Ravindran has resigned as a Non-Executive Independent Director of the bank, effective 9:00 p.m. on March 6, 2026. Following his resignation, he has confirmed there are no material reasons beyond those sta...
Karnataka Bank Postal Ballot Clears Only One of Two Director Re-Appointment Resolutions
Mar 6, 2026
Karnataka Bank has disclosed the results of a recent postal ballot e-voting process conducted to seek shareholder approval for two special resolutions concerning the re-appointment of non-executive independent directors. Shareholders were able to ...
Karnataka Bank Allots Shares Under 2018 Employee Stock Option Scheme
Mar 5, 2026
Karnataka Bank has allotted 8,113 equity shares with a face value of Rs. 10 each to employees who exercised vested options under its KBL Employees Stock Option Scheme 2018. The issuance, approved by the Managing Director and CEO, represents routin...
Karnataka Bank Board Clears Q3 FY26 Unaudited Results and Compliance Filings
Feb 10, 2026
Karnataka Bank Ltd. announced that its Board of Directors has approved the unaudited, reviewed standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, at a meeting held on February 10, 2026. The submi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.