The shares of Karnataka Bank Limited were locked in an upper circuit of 20 per cent in the early hours of Wednesday. The shares soared after the company reported robust Q2 results.
In Q2FY23, the Net Interest Income (NII) of the bank increased for the quarter by 26 per cent to Rs 802.73 crore from Rs 637.10 crore reported during the same period last year.
In the period, the bank reported their highest ever quarterly net profit of Rs 411.5 crores which is an increase of 228 per cent from Rs 125 crores Year on Year (YoY).
Their Asset quality also improved with gross non-performing assets (GNPAs) moderating to 3.36 per cent against 4.03 per cent as of the June quarter.
Karnataka Bank Limited is an old-generation private-sector Commercial bank that is engaged in retail, corporate banking, and para-banking activities. It has a national presence with a network of 879 branches spread across 22 states and 2 Union Territories.
In the span of a month, the commercial bank has delivered a return of 45 per cent to its investors. The stock has delivered a multibagger return of 103 per cent as the share price has risen from Rs 57.50 in April this year to the current levels.
Foreign Institutional Investors (FIIs) hold an 18.15 per cent stake in the bank. In addition to that, the Life Insurance Corporation of India (LIC) holds a 4.68 per cent stake.
The bank has a market capitalization of Rs 3,506 Crores and a dividend yield of 3.55% as of November 2nd, 2022.
Written by Anoushka Roy
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