Karnataka Bank Q4FY16 standalone net profit declines 21% yoy to Rs.106.79 crore : Beats Estimates

The bank’s standalone NII stood at Rs. 359.73 crore, up 23.48% yoy and 17.97% qoq.

May 20, 2016 2:39 IST | India Infoline News Service
Karnataka Bank, reported standalone net profit of Rs.106.79 crore for the quarter ended March 31, 2016, registering decline of 20.55% yoy, but growth of 10.2% qoq. It's Net Interest Income (NII) for the quarter stood at Rs. 359.73 crore, clocking growth of 23.48% yoy and 17.97% qoq.

Gross non-performing assets (GNPA) for the quarter stood at 3.44% up 49 bps yoy, but down 12 bps qoq. Provisions at 112.50 crore grew by 78.26% qoq. There was a provision write-back of Rs. 4.49 crore in the corresponding quarter of the previous year.

For the year ended March 31, 2016, the bank reported net profit of Rs. 415.29 crore, witnessing decline of 8.01% yoy. It's NII for the current period of Rs. 1,302.87 crore was up  11.47% yoy.

Provisions during the period at Rs. 326.53 crore were higher by 52.6% yoy.

Karnataka Bank reports better than expected numbers; asset quality improves:

Mangaluru-based private sector lender reported better than expected. However, the bank reported a fall in its Q4 net profit on account of higher provisioning. The bank made a provision of Rs112.50 crore during the fourth quarter of 2015-16 as against Rs 63.11 crore in the third quarter of 2015-16. However, there was a reversal of provisioning of around Rs 4.49 crore during the fourth quarter of 2014-15.
Encouragingly, the bank’s asset quality improved sequentially with gross non-performing assets (NPA) falling 12 basis points to 3.44 percent and net NPA declining 6 bps to 2.35%.

Result Highlights: (Rs. in crore)

Reported Results IIFL Estimates Variance (%)
Standalone Revenue 359.73 272 32.25
Standalone Net Profit 106.79 100 6.79

Bloomberg estimated the company’s standalone net profit at Rs. 941 crore.

Stock Commentary:

Karnataka Bank Ltd is currently trading at Rs. 118.6, up by 6.55 points or 5.85% from its previous closing of Rs. 112.05 on the BSE.

The scrip opened at Rs. 110.25 and has touched a high and low of Rs. 119.3 and Rs. 110.25 respectively. So far 1341071(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 2111.65 crore.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 158 on 07-Jul-2015 and a 52 week low of Rs. 84.85 on 29-Feb-2016. Last one week high and low of the scrip stood at Rs. 122 and Rs. 111.35 respectively.

The promoters holding in the company stood at 0 % while Institutions and Non-Institutions held 29.65 % and 70.35 % respectively.

The stock is currently trading below its 200 DMA.

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