AI Summary
✦ ClarthaThe Karnataka Bank is an Indian private-sector bank providing treasury, corporate/wholesale, and retail banking services. Wholesale banking drives lending income through term loans, working capital, foreign exchange, structured finance, and trade finance. Retail banking adds home, automobile, personal, education, gold, agriculture, and MSME loans. With no major recent development, revenue declined 1.3% year-on-year, while stable margins and 3.0% profit growth indicate modest operating improvement. ROE and debt-to-equity data are unavailable, limiting assessment of capital efficiency and leverage effects. Stable margins support earnings quality, but subdued revenue growth suggests limited near-term momentum. At 8.2 times earnings, the stock appears discounted versus typical private-bank valuations, although the discount reflects open questions around growth and profitability visibility. Neutral sentiment is appropriate until loan growth, asset quality, and returns provide clearer evidence of improvement.
Valuation Metrics
Trading 46.9% above historical median. Valuation is stable — currently in the strongly overvalued zone (z-score: +3.45). Confidence: 50%.
Live forward EPS implies next-12-month EPS of ₹41.15. Applying the stock's normalized valuation corridor produces a fair range of ₹194.23 to ₹262.95, with base value near ₹228.79 (-25.0% vs current price).
Live forward estimate anchored to the company's historical valuation corridor.
Forward EPS
₹41.15
Forward P/E
7.4x
Base Fair Value
₹228.79
Fair Range
₹194.23 - ₹262.95
Upside To Base
-25.0%
Estimate Source
Live forward EPS
Growth Estimate
+43.3%
5Y Average
0.65
Current
0.87
Overvalued
0.75
Undervalued
0.55
5Y Average
4.42
Current
8.17
Overvalued
6.39
Undervalued
4.72
5Y Average
1.83
Current
3.33
Overvalued
2.11
Undervalued
1.56
Peers & Comparison
Sector: Financials · Theme: Private Banks
| Company | Rev. Growth | Margin | P/E | vs Avg | 52W Perf. |
|---|---|---|---|---|---|
J & K BANK LTD. J&KBANKPrivate Banks | — | 34.2% | 7.4x Undervalued | -37% vs avg | +52.4% |
TAMILNAD MERCA BANK LTD TMBPrivate Banks | +18.3% | 41.2% | 9.8x Undervalued | -17% vs avg | +104.3% |
THE SOUTH INDIAN BANK LTD SOUTHBANKPrivate Banks | +8.6% | 29.4% | 8.0x Undervalued | -32% vs avg | +59.9% |
DCB BANK LIMITED DCBBANKPrivate Banks | +17.4% | 25.3% | 7.7x Undervalued | -35% vs avg | +54.4% |
CSB BANK LIMITED CSBBANKPrivate Banks | +16.9% | 24.1% | 8.5x Undervalued | -28% vs avg | -26.8% |
CITY UNION BANK LTD CUBPrivate Banks | +23.3% | 37.8% | 15.3x Premium | +30% vs avg | +35.2% |
EQUITAS SMALL FIN BNK LTD EQUITASBNKPrivate Banks | +19.2% | 10.9% | 16.9x Premium | +43% vs avg | +40.1% |
BANDHAN BANK LIMITED BANDHANBNKPrivate Banks | +21.6% | 13.6% | 20.6x Premium | +75% vs avg | +6.0% |
KARNATAKA BANK LIMITED trades at a discount (8.0x vs peer avg 11.8x), suggesting potential undervaluation relative to the Private Banks cohort. Peers include J & K BANK LTD., TAMILNAD MERCA BANK LTD, THE SOUTH INDIAN BANK LTD — selected based on business model, industry classification, market cap similarity, and business theme alignment.
Financials
Real statement data for revenue, earnings quality, conversion, and balance-sheet coverage. Monetary values are shown in Rs crore.
Latest revenue
₹2.38K CrJun 2026Latest net profit
₹419 CrJun 2026Free cash flow
₹1.01K CrMar 2026Net Profit
₹419 CrProfit conversionPerformance
Bars show revenue and net profit. The line shows net margin.
- Revenue
- Net income
- Net margin %
Revenue to profit conversion
Bridge from operating numbers to profit for the latest reported period.
Latest reported period: Jun 2026
Debt level and coverage
Debt, cash and free cash flow compared on the same crore scale.
- Free cash flow
- Cash & equivalents
Results
| Metric | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue + | 1,959 | 2,027 | 2,113 | 2,201 | 2,278 | 2,234 | 2,243 | 2,258 | 2,261 | 2,179 | 2,220 | 2,257 | 2,383 |
| Interest | 1,144 | 1,204 | 1,285 | 1,367 | 1,375 | 1,401 | 1,450 | 1,478 | 1,506 | 1,451 | 1,428 | 1,414 | 1,444 |
| Expenses + | 689 | 670 | 758 | 938 | 664 | 674 | 736 | 865 | 757 | 652 | 737 | 717 | 742 |
| Financing Profit | 126 | 153 | 70 | -104 | 239 | 159 | 57 | -84 | -2 | 77 | 55 | 126 | 196 |
| Financing Margin % | 6% | 8% | 3% | -5% | 11% | 7% | 3% | -4% | -0% | 4% | 2% | 6% | 8% |
| Other Income + | 324 | 250 | 326 | 419 | 279 | 270 | 292 | 428 | 358 | 343 | 302 | 399 | 355 |
| Depreciation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit before tax | 450 | 402 | 396 | 315 | 518 | 429 | 349 | 344 | 356 | 420 | 357 | 525 | 552 |
| Tax % | 18% | 18% | 16% | 13% | 23% | 22% | 19% | 27% | 18% | 24% | 19% | 22% | 24% |
| Net Profit + | 371 | 330 | 331 | 274 | 400 | 336 | 284 | 252 | 292 | 319 | 291 | 408 | 419 |
| EPS in Rs | 11.87 | 10.56 | 9.55 | 7.27 | 10.61 | 8.90 | 7.50 | 6.68 | 7.74 | 8.44 | 7.69 | 10.79 | 11.08 |
| Gross NPA % | 3.68% | 3.47% | 3.64% | 3.53% | 3.54% | 3.21% | 3.11% | 3.08% | 3.46% | 3.33% | 3.32% | 2.78% | 2.58% |
| Net NPA % | 1.43% | 1.36% | 1.55% | 1.58% | 1.66% | 1.46% | 1.39% | 1.31% | 1.44% | 1.35% | 1.31% | 0.98% | 0.87% |
| Raw PDF |
All values in ₹ Crores unless otherwise stated. Source: Screener Master (Standalone).
Events Timeline
Announcement under Regulation 30 (LODR)-Press Release / Media Release
Announcement under Regulation 30 (LODR)-Press Release / Media Release
The Karnataka Bank Limited Achieves Rs. 2 Lakh Crore Business Milestone.