The share price of the leading bank jumped 1.1 percent to Rs. 222.60 in its intraday session on Tuesday from its previous close of Rs 220.15 after announcing the tie-up with HDFC Life Insurance Company to offer life insurance products.
Karnataka Bank has signed a distribution agreement with HDFC Life Insurance Company Limited. According to the bank’s filing to stock exchanges on Monday, customers seeking financial security and life protection may benefit from the combination of HDFC Life’s life insurance product expertise and Karnataka Bank’s century-old banking experience.
According to the Karnataka Bank board of directors, they have entered into a partnership to offer life insurance products to Karnataka Bank customers. This will help to ensure the financial well-being and security of Karnataka Bank customers and their families by improving customer access to life insurance and improving the overall customer experience through digital technologies.
A representative for HDFC Life added, “We are dedicated to giving Karnataka Bank customers the best possible service. We acknowledge the enormous potential for life insurance in India due to its low penetration.” The company is eager to work closely with Karnataka Bank employees to better serve their customers.
The company has reported that net revenue increased by 12 percent year on year from Rs 2031.09 crores in Q2FY23 to Rs 2276.23 crores in Q2FY24. Their net profit fell 19 percent year on year, from Rs 411.47 crores in Q2FY23 to Rs 330.24 crores in Q2FY24.
Karnataka Bank is a small-cap bank with a Market capitalization of Rs 7,600 crores. It also has a net interest margin of 3.5 percent. The company’s price-to-earnings ratio of 5.62 is less compared to its peers.
The company’s shareholders are made up of 22.6 percent foreign institutional investors, 68.7 percent general public, and 8.61 percent domestic institutional investors.
The share price of Karnataka Bank has increased by 59.3 percent in the last six months and by 42 percent year to date.
Karnataka Bank provides a wide range of banking and financial services, including retail, corporate, and para-banking activities, as well as treasury and foreign exchange business.
Written by Sriram KV
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