Karnataka bank’s Q2FY19 NII has improved by 6.2% yoy to Rs467.7cr as against Rs 440.2cr. Its net profit for the quarter was below consensus estimates at Rs111.8cr against Rs93.4cr yoy due to subdued NII, although up 19.8%. NIM for the quarter declined 18bps yoy to 2.91%. GNPA for Q2FY19 stood at 4.66% against 4.72% qoq, declining by 6bps. NNPA for the quarter came in at 3% against 2.92% qoq, which has increased by 8bps.
Advances rose to Rs49,970cr registering a yoy growth of 21.69%
Management maintained loan growth guidance of 20% plus for FY19E
Deposits of the bank rose to Rs63,885cr registering a yoy growth of 12.95%
NIMs at 2.9% the management expect to maintain NIMs of >3% for full year FY19E
The management stated that stress in the pipeline, especially in terms of SMA2, MSME dispensation accounts, and restructured advances, has considerably eased
The bank has achieved a credit-deposit ratio of 78.22% for the quarter
Slippages during the quarter was Rs370cr against Rs270cr in previous quarter
The bank has exposure of Rs156cr (0.31% of advances) towards IL&FS group (3 entities) , of which one exposure of Rs30.8cr is classified under SMA-2 account.
Exposure towards NBFC- Rs75.5cr, Transportation network – Rs30.8cr (SMA2 accounts) and Energy – Rs50.4cr.
The SMA-2 accounts came in at Rs346cr against Rs740cr in Q1FY19 and Rs1340cr as at Q2FY18
Management stated that pressure on the stress pipeline is decreasing and expect slippages ratio improvement
Credit cost for the quarter was at ~40bps levels.
CASA standing at 27.08% against 27.35% in previous quarter. Its expect to achieve CASA ratio of 30% plus over next 2-3 years
Karnataka Bank Ltd ended at Rs. 98.35, down by 0 points or 0% from its previous closing of Rs. 98.35 on the BSE.
The scrip opened at Rs. 101.95 and touched a high and low of Rs. 107 and Rs. 96.40 respectively. A total of 2,16,78,559 (NSE+BSE) shares were traded on the counter. The stock traded above its 200 DMA.
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