Leading private sector bank Karnataka Bank Limited has its main office in Mangaluru, Karnataka, India. The bank has a long history dating back more than a century, has become stronger through time, and is widely recognised throughout the nation. Karnataka Bank had a network of more than 860 branches and more than 1,100 ATMs as of March 2021, and its market value was over Rs. 3,500 crores.
The banking industry has long been a desirable industry for investors, and stock market investing can be a rewarding means to increase wealth. Investors are closely monitoring the trends and patterns in the share prices of Karnataka Bank as we head towards 2023 and beyond.
Founded on February 18, 1924, Karnataka Bank has evolved into a leading financial institution providing a wide range of tailored products and services to meet the diverse needs of both individuals and businesses. Headquartered in Mangalore, the bank boasts a storied history marked by several notable accomplishments. These milestones include the establishment of its inaugural branch in Bombay, the elevation of its classification from ‘D’ class to ‘C’ class, and strategic acquisitions of institutions like Sringeri Sharada Bank Ltd., Chitaldurga Bank Ltd., and Bank of Karnataka Ltd.
Over time, Karnataka Bank has significantly expanded its branch network, with a presence extending to numerous locations throughout the country. It has celebrated major achievements, including surpassing the Rs. 1 crore milestone in total business turnover, earning a place in the Second Schedule of the Reserve Bank of India Act, and progressing from ‘B’ class to ‘A’ class status.
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Contents
HOW TO BUY KARNATAKA BANK SHARES:
In India, for purchasing Karnataka Bank shares, you have the option to utilize the services of several stockbrokers or financial institutions, including:
- Zerodha
- ICICI Direct
- HDFC Securities
- Sharekhan
- Kotak Securities
- Angel Broking
- Axis Direct
- Motilal Oswal
- 5Paisa
- Edelweiss
KARNATAKA BANK IN RECENT NEWS
- The Managing Director and CEO of Karnataka Bank have outlined the bank’s vision to transform into a modern digital financial institution, emphasizing a focus on digital banking and co-lending initiatives.
- P Jayarama Bhat began his career as a lecturer for a short period of three months before joining Karnataka Bank as a Probationary Officer in January 1973.
- In the first quarter of the current fiscal year, Karnataka Bank reported a notable surge in net profit, reaching Rs 370.70 crore, which represents a substantial increase compared to the previous figure of Rs 114.18 crore.
- Karnataka Bank reports a Q1 net profit of ₹370.7 crore.
- Karnataka Bank is targeting to achieve a loan book of over Rs 1 lakh crore within the next three years.
KARNATAKA BANK SHARE PRICE TARGET 2023
| KARNATAKA BANK SHARE PRICE TARGET 2023 | Maximum Price | Minimum Price |
| September 2023 | ₹219.50 | ₹199.55 |
| October 2023 | ₹213.11 | ₹193.73 |
| November 2023 | ₹217.37 | ₹197.61 |
| December 2023 | ₹223.89 | ₹186.58 |
Karnataka Bank’s share price target for 2023 shows a bullish trend, with an overall uptrend in the stock’s price. The year starts off with a maximum price of ₹219.50 and a minimum of ₹199.55 in September, representing a growth percentage of 29.99% from the previous year’s closing price.
By the end of the year, Karnataka Bank’s share price is predicted to reach a maximum of ₹223.89 and a minimum of ₹186.58 in December, representing a growth percentage of 48.86% and 26.48%, respectively, from the previous year’s closing price.
KARNATAKA BANK SHARE PRICE TARGET 2024
| KARNATAKA BANK SHARE PRICE TARGET 2024 | Maximum Price | Minimum Price |
| January 2024 | ₹219.37 | ₹191.85 |
| February 2024 | ₹235.24 | ₹196.04 |
| March 2024 | ₹247.63 | ₹201.32 |
| April 2024 | ₹225.11 | ₹173.16 |
| May 2024 | ₹187.60 | ₹144.30 |
| June 2024 | ₹225.11 | ₹173.16 |
| July 2024 | ₹191.35 | ₹148.33 |
| August 2024 | ₹210.48 | ₹167.05 |
| September 2024 | ₹221.01 | ₹170.00 |
| October 2024 | ₹260.01 | ₹200.01 |
| November 2024 | ₹273.01 | ₹210.01 |
| December 2024 | ₹278.47 | ₹214.21 |
Karnataka Bank’s share price target for 2024 suggests a continuation of the bullish trend seen in 2023, with a significant increase in the maximum share price target. The year starts off with a massive jump, with a maximum price of ₹209.37 and a minimum of ₹1037.03 in January, which is an anomaly in the data and is likely due to a stock split or other corporate action.
In February, the share price stabilizes, with a maximum of ₹235.24 and a minimum of ₹196.04. The trend continues in March, with a maximum of ₹247.63 and a minimum of ₹201.32. The share price dips slightly in April and May before recovering in June, with a maximum of ₹225.11 and a minimum of ₹173.16.
In July, the share price continues to rise, with a maximum of ₹191.35 and a minimum of ₹148.33. The share price reaches a maximum of ₹278.47 and a minimum of ₹214.21 in December.
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KARNATAKA BANK SHARE PRICE TARGET 2025
| KARNATAKA BANK SHARE PRICE TARGET 2025 | Maximum Price | Minimum Price |
| January 2025 | ₹284.04 | ₹218.49 |
| February 2025 | ₹298.99 | ₹229.99 |
| March 2025 | ₹313.94 | ₹241.49 |
| April 2025 | ₹280.30 | ₹215.62 |
| May 2025 | ₹254.82 | ₹196.01 |
| June 2025 | ₹280.30 | ₹215.62 |
| July 2025 | ₹266.95 | ₹205.35 |
| August 2025 | ₹278.08 | ₹213.90 |
| September 2025 | ₹291.98 | ₹224.60 |
| October 2025 | ₹309.50 | ₹238.08 |
| November 2025 | ₹331.16 | ₹254.74 |
| December 2025 | ₹337.79 | ₹259.84 |
The share price target for 2025 suggests a continuation of the bullish trend seen in the previous years, with a maximum target of ₹337.79 and a minimum target of ₹196.01. In January, the share price starts the year off strong, with a maximum of ₹284.04 and a minimum of ₹218.49.
The trend continues in February and March, with the share price reaching a maximum of ₹298.99 and ₹313.94, respectively. The share price dips slightly in April and May before recovering in June, with a maximum of ₹280.30 and a minimum of ₹215.62. The share price continues to rise in July and August, with a maximum of ₹278.08 and a minimum of ₹213.90.
In September, the share price reaches a maximum of ₹291.98, followed by a further increase in October with a maximum of ₹309.50. The share price continues to rise in November, with a maximum of ₹331.16, before ending the year with a maximum of ₹337.79 and a minimum of ₹259.84 in December.
KARNATAKA BANK SHARE PRICE TARGET 2026 TO 2030
| KARNATAKA BANK SHARE PRICE TARGET BY | Maximum Price | Minimum Price |
| 2026 | ₹236.45 | ₹165.51 |
| 2027 | ₹200.98 | ₹140.69 |
| 2028 | ₹361.77 | ₹253.24 |
| 2029 | ₹743.13 | ₹520.19 |
| 2030 | ₹827.57 | ₹579.30 |
Looking at the data for Karnataka Bank’s share price for the years 2026 to 2030, we can see a mix of both bullish and bearish trends. In 2026, the maximum price is expected to reach ₹236.45 while the minimum price may fall to ₹165.51.
In 2027, the maximum price is predicted to be ₹200.98, which is lower than the previous year, with a minimum price of ₹140.69. However, the years 2028 and 2029 show a significant uptrend with a maximum price of ₹361.77 and ₹743.13 respectively, indicating potential growth opportunities.
The year 2030 shows a maximum price of ₹827.57, which is the highest price target among all the years, with a minimum price of ₹579.30. Therefore, investors need to keep a close eye on the market trends and company performance to make informed decisions on investment strategies.
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FINANCIAL STRENGTH OF KARNATAKA BANK (2019 TO 2023)
| Financial Year | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 |
|---|---|---|---|---|---|
| Revenue (in Rs Crore) | 5,906 | 6,475 | 6,232 | 6,222 | 7,220 |
| Interest (in Rs Crore) | 4,001 | 4,444 | 4,049 | 3,731 | 4,035 |
| Expenses (in Rs Crore) | 2,245 | 2,706 | 2,902 | 2,677 | 2,650 |
| Financing Profit (in Rs Crore) | -340 | -676 | -719 | -186 | 535 |
| Financing Margin % | -6% | -10% | -12% | -3% | 7% |
| Other Income (in Rs Crore) | 1,002 | 1,262 | 1,404 | 954 | 993 |
| Depreciation (in Rs Crore) | 54 | 64 | 74 | 74 | 86 |
| Profit Before Tax (in Rs Crore) | 608 | 522 | 612 | 695 | 1,441 |
| Tax % | 21% | 17% | 21% | 27% | 18% |
| Net Profit (in Rs Crore) | 477 | 432 | 483 | 509 | 1,180 |
| EPS (in Rs) | 15.35 | 13.89 | 15.52 | 16.35 | 37.79 |
| Dividend Payout % | 21% | 0% | 12% | 24% | 13% |
- Revenue Growth: The company witnessed consistent revenue growth, reaching Rs 7,220 crore in March 2023, marking substantial progress over the period.
- Financing Profit: After some fluctuations, the financing profit rebounded impressively to Rs 535 crore in March 2023, indicating improved financial performance.
- Profit Margin: The financing margin percentage exhibited positive momentum, rising from -6% in 2019 to a healthy 7% in 2023.
- Other Income: The company consistently generated substantial other income, supporting overall profitability.
- Net Profit Surge: Net profit experienced remarkable growth, surging to Rs 1,180 crore in March 2023 from Rs 477 crore in 2019.
- Earnings per Share (EPS): The EPS saw a significant increase, reaching Rs 37.79 in March 2023, reflecting enhanced earnings for shareholders.
- Dividend Payout: The dividend payout ratio fluctuated but remained reasonable, ensuring a balance between rewarding shareholders and reinvesting in the business.
In summary, the company demonstrated a strong financial performance with notable revenue and profit growth over the last five years, positioning itself as a promising entity in its industry.
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KARNATAKA BANK SHARE PRICE TARGET BY EXPERT
Axis Securities has set a price target of Rs 250 for Karnataka Bank shares. (August 4,2023)
POINTS TO KEEP IN MIND WHILE INVESTING IN KARNATAKA BANK SHARES:
- The stock is currently trading at a valuation of 0.84 times its book value.
- The company has achieved impressive profit growth, posting a 29.4% CAGR over the last five years.
- However, the company’s interest coverage ratio remains low, raising concerns about its ability to cover interest expenses.
- Sales growth for the company has been lackluster, with only a 5.89% increase over the past five years.
- The company’s return on equity (ROE) over the last three years has been relatively low at 10.4%.
- The company has significant contingent liabilities amounting to Rs. 12,875 Crore.
- There is a possibility that the company is capitalizing its interest costs, which can impact its financial reporting.
FAQ’s
The maximum share price of Karnataka Bank in 2024 is Rs. 278.47
The maximum share price of Karnataka Bank in 2025 is Rs.337.79
The maximum share price of Karnataka Bank in 2027 is Rs. 200.98
The maximum share price of Karnataka Bank in 2029 is Rs. 743.13
The maximum share price of Karnataka Bank in 2030 is Rs. 827.57
CONCLUSION: KARNATAKA BANK
It is clear from the financial records over the previous five years that Karnataka Bank has had a mixed track record. Although the bank’s growth in total income and provisions and contingencies have decreased, it has been able to keep its net interest margin stable and increase its profit after taxes moderately. Also, the fundamental EPS has gradually improved over time. Revenue and profit growth at the bank has fluctuated, with some years seeing positive growth and others seeing negative growth.
Due to the bank’s uneven financial performance during the previous five years, it might not be the best choice for investors seeking rapid growth.Despite Karnataka Bank’s impressive profit growth of 29.4% CAGR over the last five years, concerns arise due to low interest coverage and a weak sales growth rate of 5.89%. Additionally, the company’s low return on equity (ROE) at 10.4% over the last three years is a point of consideration. Expert opinions should be taken into account, with Axis Securities setting a target price of Rs 250 for the stock. The company’s contingent liabilities of Rs. 12,875 Crore further warrant caution and potential capitalization of interest costs adds to the complexity of its financial outlook.
Suhani Bhat, a student of Hansraj college, is a finance writer who takes deep interest in stock market, mutual funds, and other financial news. She writes for multiple finance blogs, including Financegradeup.com. Other than English, she also speaks Hindi.