Karnataka bank – private bank @ public sector valuation

(GSrikan) #122

Yes. There is no mention of how much % of provisions were made towards that fraud.

It would have been surely recognized as NPA. The only question would be whether 100% provision is made or not.

The worst part of the results is 60-70% NPA divergence and there is no comment on it in the press release. With 2016 audit revealing 0% divergence and 2017 audit huge divergence, it makes no sense.

(..pd..) #123

Asking the questions is concall makes sense?

(Divyanshu Taneja) #124

You rightly pointed out @GSrikan regarding divergence in npas is it a redflag on management credentials

(Batterinram) #125

Other negatives that I noticed
Deposit growth was only 10.8% bank has been able to achieve credit growth of over 20% through significant improvement CD ratio. So there is limited scope for the bank to leverage this further.CASA ratio is down. Capital adequacy is down if this continues there will be another round of equity dilution

(Bhambri3) #126

Q4 concall details anyone? Have they conducted it or any date given?

(krunaldoshi84) #128

The latest SHP suggest that Vijay Kedia’s holding has dropped below 1%. His name does not feature in the list of top Sh.

(abi.varghese) #129

Vijay kedia looks to have exited Karnataka Bank and he reduced his position in Aries Agro.

(Rushil) #131

Karnataka banks management has been consistently missing guidance. They had guided for 2% NNPA by the end of FY18. That did not happen.
They said we have a 2020 vision and then scrapped it. Now they are talking of 1234 plan.
So the goal posts keep changing and the management keeps selling dreams on their concalls. As soon as their npa divergences came up at least for me trust in the management is non existent. Lesson learnt
Disclosure- exited after npa divergences increasing last quarter.

(Bhambri3) #132

Do you have the latest concall transcript of KTK?

(Rushil) #133

Don’t think they have put it online.

(Divyanshu Taneja) #134

Excellent results and a definate candidate for re rating

(Vilas D'Souza) #135

I saw that the gnpa is still high. Capital adequacy ratio lowest in the last few quarters maybe. Overall results feel good
Disc invIested

(SBT) #136

Fall in Capital adequacy ratio is leading to equity dilution. The price will adjust accordingly.
Disc : not invested, watching

(Divyanshu Taneja) #137

SBI says that jet airways account is stressed asset , so does Karnataka bank has also exposure towards jet airways?

(Divyanshu Taneja) #138

Can anyone tell the Quantum of exposure of Karnataka bank towards il&fs

(GSrikan) #139

156 cr (0.31% of total advances) Some 32 cr is part of sma2. Remaining is standard. No provisions made so far for ilfs debt.

Disl: invested

(Saravanan B) #140

In my view, public shareholders should voice their views on passing a resolution for getting it acquired by large banks like HDFC, Kotak, etc. It will unlock value for all the stakeholders involved.

(Divyanshu Taneja) #141

If possible please share the concall reading

(GSrikan) #142

Apart from 156 cr loan they have ~25cr investment exposure too towards IL&FS according to the above research report.

Discl: Invested

(Saravanan B) #143

The management is not replying to the investors query. It is a strong mismanagement in their part. I would request how can I escalate this issue? @hitesh2710 @ayushmit

Could we escalate to SEBI?